CONSUMERS ARE likely to be spared further rises in gas and electricity prices when the energy regulator announces his decision today on applications from the ESB and Bord Gáis.
The ESB is seeking a 5.6 per cent increase in electricity prices and Bord Gáis has formally applied for a 3.9 per cent rise in gas prices. However, Bord Gáis has said since its application that it now does not need the price increase and the ESB has said it is unlikely to get the hike it sought.
World energy prices have tumbled by over 60 per cent over the past few months since the utilities made their applications, seemingly removing the need for a price increase.
However, the Commission for Energy Regulation's (CER) Michael Tutty cautioned against an automatic assumption that prices would not go up.
"We will be taking into account the fall in commodity prices since they made their applications, but we have be certain both companies can really cover all their costs in acquiring energy," Mr Tutty said.
Asked whether the commission could even tell the utilities to reduce their prices in view of global price trends, he said CER was empowered to do this if circumstances dictated.
The ESB was granted a 17.5 per cent increase in tariffs last August, while Bord Gáis was given a 20 per cent increase.
Groups representing hoteliers and consumers appealed at a consultation on the proposed increases last month for them to be deferred because of the burden they were placing on businesses and consumers.