The company, which is one of the big four suppliers in the market, is to reduced unit rates of both fuels by 15.5pc and to cut its standing charges by the same percentage.
The reductions, that will apply to all its 600,000 residential customers, will take effect from November 9.
Dual-fuel customers will save up to €631 per year on an estimated annual bill.
Bord Gáis Energy said all residential customers will benefit and are in addition to any discounts that current Bord Gáis Energy customers already benefit from.
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Once implemented, the reductions will mean the average electricity bill will fall to €1,948 over a year. This is a saving of €357, the supplier said.
The average gas bill will fall to €1,607, a saving of €274.
Dual-fuel customers can expect an annual average bill €3,555, a saving of €631.
Managing director of Bord Gáis Energy Dave Kirwan said: “Today we are announcing a reduction in our gas and electricity unit rates of 15.5pc. Importantly, we are also reducing our standing charges by the same amount for all residential customers.”
“We know energy costs have been hugely challenging for customers over the past two years. “While the energy market remains uncertain and volatile, we are happy to be in the position to pass on these reductions to our customers today,” Mr Kirwan said.
The supplier said that since the start of the energy crisis in 2021, it has worked hard to support customers wherever it can.
It recently announced company results, it posted an operating loss of €30m as it absorbed higher energy costs over the first half of 2023.
The company has invested in hiring additional customer care teams and launched their Energy Support Fund which to date has given out €5.2m to the most vulnerable customers, it said.
Bord Gáis Energy is the seventh energy provider to reduce its prices.
Last week Flogas announced a 30pc reduction in its electricity and natural gas unit rates and it is also reducing its standing charges. However, its unit rates are regarded as some of the highest in the market.
Flogas became the sixth energy provider to cut its prices after PrepayPower said it was reducing its electricity and gas prices by around 13pc.
SSE Airtricity, one of the big four suppliers in the market, said it is reducing electricity unit rates for its household customers by 12pc from November 1.
The price reduction will see a typical electricity customer save €233 (including Vat) a year, it said.
Gas customers will see standard unit rates come down by 10pc.
There is no reduction in its standing charge.
It comes after the largest electricity supplier in the State, Electric Ireland, this week said it was reducing electricity and gas unit prices and the standing charges from the start of November.
The Electric Ireland reduction in residential electricity unit rates and standing charges works out at 10pc and equates to an annual saving of €212 on the average electricity bill.
Energia announced price reductions of up to 20pc last week, with Pinergy giving its customers two price cuts so far this year.
PrepayPower recently set up a separate bill-pay energy provider, Yuno Energy.
It is promising it can save customers more than €500 a year on their electricity bills by closely monitoring their energy usage at home.
