BORD GÁIS HAS said that it is too early to say definitively how much gas prices will increase later this year following a report this morning that households can expect an increase of at least 10 per cent later this year.
Though its expected that energy prices will rise when the Commission for Energy Regulation (CER) completes its latest review of prices, Bord Gáis said that it was “too early in the process to be definitive as to how prices could change from 1 October”.
Increases in wholesale prices for gas bought from abroad along with the weakening of the euro against the sterling – the currency the gas is purchased in – is likely to see prices rise later this year, the CER has said.
The Irish Independent reported today that the increase will be at least 10 per cent, costing the average family an extra €88 per year.
Indications are that any increase will be in double digits but Bord Gáis would not be specific when asked about prices rises today, saying that it will be making its submission to the CER in the coming weeks.
Last year the supplier got approval for a 22 per cent price hike from the regulator having not increased its gas prices since February 2010.
Although its tariffs are the only ones set by the regulator, other energy suppliers such as ESB and Airtricity will normally track trends in the market.
Speaking to TheJournal.ie, Bord Gáis Energy power trader John Heffernan said it was not possible to tell whether or not wholesale prices would come down in the coming months.
“The big thing is the sanctions coming down on Iran on the 1 July. They haven’t made an impact yet and it depends on how Iran reacts and in the mean time how negotiations go,” he said referring to the EU trade sanctions being placed on Iran over its nuclear activities.
“At the moment sanctions are going ahead on 1 July and no agreement has been reached so we will have to see how it pans out,” Heffernan said adding that much would also depend on economic growth in the US and particularly China where growth has been slowing in recent quarters.