BUSINESS AND consumer groups have welcomed the news that gas and electricity prices are to be pegged at current levels in the new year.
The Commission for Energy Regulation (CER) yesterday announced there will be no increase in the price of gas for most Bord Gáis customers, while electricity prices will drop slightly, by just less than 1 per cent.
Last month, Bord Gáis sought a 3.9 per cent price increase, with the ESB proposing an increase of 5.6 per cent. However, world energy prices have tumbled since, removing the need for the increase.
In making its decision, the commission said it took into account recent falls in the price of gas, coal and oil on international fuel markets. It also said it was careful to ensure prices reflected underlying costs so as not to distort competition in the retail gas and electricity markets.
It said there would have been large increases but for a number of measures agreed by the two companies. Electricity prices would have risen 12 per cent were it not for a €300 million rebate requested by CER from the ESB. Bord Gáis had passed on a voluntary rebate of €8.5 million.
Chief executive of the National Consumer Agency Ann Fitzgerald described the announcement as welcome news as it showed savings from the sharp decrease in international fuel prices were being passed on to the end user. "This is good news for consumers especially as we are moving into tougher economic times."
Business group Ibec also welcomed the announcement but went on to express concern about the effect of high energy costs on Irish competitiveness. It pointed out that gas and electricity prices had already risen by 20 per cent and 17.5 per cent, respectively, earlier this year. "While international fuel costs are outside our control, much can be done by Government and the regulator to bring Irish prices back into line with the EU average," said Donal Buckley, head of business infrastructure at Ibec.
"There is a need to introduce measures to promote energy efficiency, boost competition in the market and address Ireland's fuel mix and energy infrastructure deficit," he added.
