The energy regulator has decided to allow the ESB to set its own electricity prices for residential customers from 4 April.

This means Electric Ireland - the new name for ESB's supply business - will not need to seek approval from the Commission for Energy Regulation if it wants to raise or reduce prices for consumers.

CER said it was making the move because of strong competition in the domestic market, with the ESB's share falling below the 60% level targeted by the regulator.

It said around one million people had switched their electricity supplier since early 2009.

The regulator had also called for the ESB to re-brand its supply business before it deregulated the market completely.

CER chairperson Michael Tutty said deregulation of prices would help to provide further choice and competitive prices for consumers in the long run.

The ESB welcomed the decision, with chief executive Padraig McManus describing it as a 'significant milestone' for the company.

Last year, Mr McManus said the ESB would match any offers being put forward by its competitors - who include Bord Gáis and Airtricity - when the market was fully opened up.

But the energy regulator last year warned ESB customers not to expect significant drops in their bills as a result of the move.

