Bord Gáis today revealed plans to cut its prices by over nine per cent, cutting an average of €76 off annual household bills.
The company, which is already fighting for customers to switch to its cheaper electricity supplies, said the cuts could come into effect from October.
Bord Gáis Energy managing director David Bunworth said the move will see the second cut in gas prices this year.
“When you combine this reduction with the savings Bord Gais Energy announced in May 2009, we will see average gas prices drop to levels that are 22 per cent below the typical bill in 2006 - customers are getting considerable value just at a time when they need it most,” he said.
“Gas prices are affected by global oil prices and the international energy markets and this proposal reflects the opportunity to pass on reductions to our customers.”
Bord Gáis said the price cuts will cut household bills by 9.3 per cent on average while costs to small and medium businesses will come down by an average of 13.6 per cent.
The company said its reductions have brought gas prices down around a fifth this year.
The price cut proposal has been submitted to the Commission for Energy Regulation (CER) for approval. A final determination is expected from the commissions in early September for implementation from October 1st.
Fine Gael energy spokesman Simon Coveney welcomed the development. “This is great news for consumers and small businesses, representing a total cut of more than 20 per cent in gas prices this year for the average household, and vindicating Fine Gael’s call last May for a similar cut,” he said.
He also called on the regulator to put more pressure on the ESB to reduce electricity costs.