BORD GÁIS ENERGY domestic gas customers will see their bills rise by 8.5 per cent later this autumn, after the energy regulator approved an application to increase its prices.
The Commission for Energy Regulation announced its approval for the hike, affected Bord Gáis’s Non-Daily Metered customers, this afternoon. The increases will kick in from October 1.
The commission said Bord Gáis Energy (BGE)’s submission to a tariff review had sought clearance to raise its overall revenue by €24.2 million, to €293 million, which was equivalent to a price increase of just over 7.53 per cent.
This application had later been increased as a result of the falling value of the euro against sterling, rising gas prices, and increased transmission tariffs – affecting all energy suppliers.
“The CER understands that increases may cause problems for many consumers given the prevailing very difficult economic circumstances,” the regulator admitted.
It very much regrets this, but notes that wholesale gas costs (in which the euro/sterling exchange rate plays a big part) are something that Ireland has no control over.
It added that it had not approved all of the costs sought by BGE, approving only just under €22.2 million out of the €24.2 million price increase that the supplier had asked for.
The regulator advised consumers to shop around and ensure they were getting the best value for money from their domestic gas supplier.
BGE is the only gas supplier whose prices are subject to the regulator’s oversight, though other suppliers ordinarily tend to adjust their prices in accordance with those of their State-owned competitor.
The regulator approved a 22 per cent hike in BGE residential prices last year.
More to follow…