The Commission for Energy Regulation has today said that it will allow Bord Gais to increase household gas prices by an unprecedented 22% in October.
Pointing to escalating wholesale gas prices, Bord Gais Energy initially requested permission for an increase of 28%.
Bord Gais is the only regulated gas supplier and requires approval from the energy regulator before it can increase gas prices. Bord Gais does not require approval to increase electricity prices and has already said it will hike electricity unit rates and standing charges by 12% each starting August 1st.
Currently an average Irish household supplied by Bord Gais spends around €727 per year on gas. Customers can expect the cost of their gas to increase by between €135 and €150 per year depending on how the price increase is applied.
It is expected that all other gas suppliers including ESB Electric Ireland, Airtricity and Flogas will follow Bord Gais with similar increases in October making it unlikely that a year’s supply of gas could be bought for less than €750.
Airtricity’s parent company Scottish and Southern Energy has already announced price increases of 18% for gas and 11% for electricity in the UK making all but certain that they will impose similar hikes in Ireland.
Currently the cheapest gas supplier in the market for an average household is Flogas at €634 and the most expensive is Bord Gias at €727.