DOMESTIC GAS prices are likely to remain frozen next winter after the Commission for Energy Regulation proposed no change to the current tariffs for residential and small business users.
The commission said it was recommending a price freeze for the year from October 1st next despite a 23 per cent increase in wholesale gas prices over the past 12 months.
It said increases could be avoided because Bord Gáis had spread the purchase of its reserves throughout the year, and was able to return to the customer higher than expected profits earned during last winter’s cold snap.
The price freeze is subject to a consultation process but is likely to be implemented as proposed by the commission yesterday after Bord Gáis said it would maintain prices at current levels.
The company pointed out that this was the fourth consecutive price review without a price increase. It said gas prices had fallen by more than 25 per cent since May 2009.
It also called on the commission to publish a road map to gas deregulation as soon as possible to enable it to actively compete on price.
Chief executive John Mullins said: “We are pleased that despite an increase in wholesale energy prices, we are able to maintain prices at their current level.
“We look forward to being able to provide more value to our customers on a dual fuel basis when the gas market is fully deregulated.”
Bord Gáis has moved into the electricity market in recent years, picking up more than 400,000 customers at the expense of the ESB. However, it is now facing competition in the gas market from Flogas.
