The changes will come into effect from 16 March for residential and electricity customers as well as customers who signed up to its new fixed rate products in gas and electricity. The announcement comes as world oil and gas prices drop to their lowest levels in years.

Bord Gais have said the cuts should give families an average saving of €29.47, while the reduction in the electricity price should see a saving of €24.91 on the average bill. The reduction comes from a review of reduction in wholesale energy costs.

In a statement, Dave Kirwan, Chief Operating Officer of Bord Gais, said: "With the reduction in international wholesale energy costs, we now have the opportunity to drop our prices in both gas and electricity and we are happy to be able to do so."

However, the IFA has called on Bord Gáis and other energy suppliers to further reduce these prices, in line with the 50% fall in international fuel prices.

IFA’s Inputs Project Team Leader James McCarthy said the full cost savings are not being passed back to the consumer.

"This is placing an unjustifiable cost burden on businesses and consumers," he said. “Each year farmers spend over €500m on diesel fuel, electricity and other energy. Minister White and the CER must improve the competitiveness of the energy sector.”