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Bord Gais

Regulator approves Bord Gais request for 22 per cent price hike

Bord Gais had asked for a 28 per cent increase in its prices, but has been given formal permission to raise prices by 22 per cent.

BORD GAIS ENERGY has been given permission to increase its domestic gas charges by 22 per cent, effective from next month – hitting customers just on the cusp of winter.

The Commission for Energy Regulation has given the provider a green light to hike the charges from October 1, following an application from BGE to hike prices by just over 28 per cent.

The commission said the potential increase was “on a par with neighbouring markets”, pointing to price hikes from similar providers in the UK where prices have been increased significantly by many providers.

“While satisfied that the main upward cost driver was gas gas commodity, the CER was not satisfied with aspects of the submission, some of which deviated from the appropriate Revenue Control Formula,” it said, approving a lesser increase of 22 per cent.

The commission noted that Bord Gais Energy had not increased its gas prices since February 2010, but admitted that the move would “cause hardship for many consumers”.

“Wholesale gas costs are something over which Ireland has no control,” it said, suggesting that consumers facing difficulties paying their bills should contact their supplier “at an early stage” to discuss their problems.

Interim approval for the price hikes had been given in July, with the CER then inviting public submissions on the proposal.

Bord Gais Energy will have another opportunity to seek a review of its gas prices in late November or early December, with any proposed changes taking effect from January 1.

Read: Bord Gais Energy may have spent up to €300,000 on luxury office chairs >

July: Bord Gáis confirms 12 per cent price hike on electricity >

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