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Deregulated
From July, Bord Gáis will no longer have to apply to set their own prices
Price experts say it’s a good thing because it means better competition.
THE DOMESTIC GAS market will be deregulated from the beginning of July, meaning Bord Gáis Energy will be free to set their own prices and also bundle their gas and electricity products.
Until now, Bord Gáis have been required to apply to the Commission for Energy Regulation to change their prices but now that a number of criteria have been met, that will no longer be the case.
The announcement was made this morning by the CER who says that it comes following a review which showed that the criteria would be met in June.
For the deregulation to occur a number things had to happen, this included the requirement that there be at least two gas suppliers in the market who are not Bord Gáis Energy, each must also have a market share in excess of 10%. Another requirement was that there must be customer switching rates in excess of 10% per year
Contrary to what you may expect, Simon Moynihan of price comparison site Bonkers.ie says that the announcement is “great news for consumers” because it brings “an extra level of competition to the market”.
“The likelihood is that Bord Gáis ill most likely introduce a discounted gas tariff and fuel tariff,” he explains.
Moynihan says that Bord Gáis will have been prepared for the announcement and will have prepared a number of gas and electricity bundles which will be confirmed around September when most people consider switching.
He adds that Bord Gáis have been at a disadvantage compared to other duel-fuel gas and electricity providers like Energia and Electric Ireland who have had the ability to package their products together.
“They know they have to catch up because they are about €140 more expensive that the cheapest providers.”
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