Bord Gais has just applied to the Commission for Energy Regulation to increase gas prices. The company is looking to add 7.54% to household gas bills.
If the regulator allows the increase, customers can expect to pay between €54 and €67 more per year for their gas depending on how the increase is applied. The regulator will decide at the end of August and price increases will take effect on October 1st - just in time for peak winter gas usage.
There’s a sense of déjà-vu about this. Last summer, Bord Gais applied to the Commission for Energy Regulation for an increase of 28%. The CER allowed for 22%. Average gas bills went from €727 per year to €890. If the regulator grants this increase, customers can expect to pay in the region of €950 per year for their household gas.
Based on what happened last year, it’s fair to predict that all other gas suppliers will hike prices by a similar amount. It’s what they all did last time around.
Bord Gais says it needs the increase because most gas used in Ireland is bought from the UK and has to be paid for in Sterling. Even though wholesale gas prices are falling, the collapsing Euro is making gas more expensive.
Bord Gais is Ireland’s only regulated energy supplier. The company can set its own electricity prices, but if it wants to increase gas tariffs, permission must be sought from the Commission for Energy Regulation.
If the full price hike is granted, household gas bills will have increased by almost a third in just 12 months. It’ll mean customers forking out €20 more per month to heat their homes than they were just a year ago.
In a statement, the energy regulator suggested that people should shop around for the best gas deal. There are currently four companies supplying gas to Irish households. Bord Gais, Electric Ireland, Airtricity and Flogas. With the exception of Bord Gais, each has a range of gas tariffs and introductory offers which may help customers reduce bills. bonkers.ie runs the only gas and electricity comparison service in Ireland to be accredited by the Commission for Energy Regulation.