Gas price cut of up to 25% may save €226 per home

DOMESTIC GAS prices could fall by up to one quarter over the course of the year, cutting over €200 off the average annual bill.

John Mullins, chief executive of Bord Gáis, the State company which supplies natural gas to more than 630,000 homes in the Republic, said yesterday there was scope for cuts in charges.

Prices could be cut by up to 25 per cent over the rest of the year, he estimated, adding this could begin from April 1st, the earliest date allowed by the current regulation system.

The average annual gas bill is about €907 a year. A 25 per cent cut in this would top €226.

Bord Gáis pays world market prices for fuel supplied to customers. These are tied to oil prices which have fallen since record highs last summer. Bord Gáis sought Commission for Energy Regulation (CER) permission to raise prices after the rise in oil prices to €148 a barrel in July.

The CER approved a 20 per cent hike, and warned that it could have to allow a further increase. However, Bord Gáis told the regulator in November that it would not need a further increase, as world oil and gas prices had begun falling in autumn.

Mr Mullins said yesterday that Bord Gáis is “comfortable” with near-term gas prices, and believes it can cut prices. The company can only make reductions ordered by the regulator.

A number of groups have called for general cuts in energy costs as oil and gas prices have fallen and remain low on world markets.