Bord Gáis to raise gas price by 22%

CUSTOMERS OF Bord Gáis will pay nearly 22 per cent more for their home gas supplies from the beginning of next month.

The Commission for Energy Regulation, which approved the price rise for residential customers yesterday, is urging bill payers to “shop around” for energy supplies.

Bord Gáis had in July applied for an increase of 28 per cent in prices, but the approved 21.7 per cent increase will take effect from October 1st.

In its decision paper published yesterday, the regulator said it understood an increase of such a magnitude will “cause hardship for many consumers given the difficult economic circumstances”.

“It very much regrets this, but notes that wholesale gas costs are something over which Ireland has no control. The regulator has endeavoured to allow only those costs which are deemed efficient and fair into this increase”.

It stressed there were alternative suppliers, and encouraged customers to shop around.

It also said customers facing difficulties paying their bills should contact their supplier at an early stage to discuss the issue. The increase, it added, was “on a par” with neighbouring markets.

Bord Gáis yesterday said the increase was the first for its gas customers since September 2008, and the price increases on the international wholesale market made the increase inevitable.

Business gas tariffs will also increase by 21.7 per cent.

The ESB’s gas prices will also increase by 21.7 per cent as a result of the regulator’s announcement, a spokesman said. Despite the increase, the ESB’s gas unit rates would still be cheaper than Bord Gáis, he added. The ESB has recently increased its electricity prices by 15 per cent.

Airtricity customers are due to see an increase of 20 per cent in their gas prices next month, and an increase of 12 per cent in their electricity bills from this month.