Regulator stays gas price rise

Thousands of customers will get a short-term benefit from a decision by the energy regulator Mr Tom Reeves to postpone a decision on the price of gas.The Commission for Energy Regulation (CER), led by Mr Reeves, said current prices for domestic customers, known as the franchise market, would remain in place until September 30th.

This is far later in the year than when price increases were introduced. In the meantime, the CER is undertaking a review of prices in the franchise market and among commercial users.

The review will also look at the revenues of Bord Gáis Energy Supply, the retail arm of the company.

The CER said it had instructed Bord Gáis to leave prices at current levels. It gave no indication which way prices might go in September, although some believe they are likely to increase significantly.

The CER said the Irish natural gas market had undergone several important structural changes to allow competition.

"The current Bord Gáis franchise tariffs were introduced piecemeal over the years and the commission now considers that the time is right for a complete review of these tariffs, given developments in the introduction of competition into the market."

It said several consultation papers would be issued during the review and key "economic, financial, regulatory and social policy principles" would be taken into account.

There are two parts to the gas market, the franchise area, which refers to ordinary households and the part of the market governed by the regulated tariff formula (RTF). This contains some of the State's largest customers.