The Commission for Energy Regulation (CER) announced this week that the impending Bord Gáis price increase will apply to standing charges and unit rates. Household energy bills will increase by an extra €13.59 per annum.
Bord Gáis Energy is the only regulated gas supplier in the country, and approval must be sought from the CER before gas prices can be increased. According to Simon Moynihan of bonkers.ie, a Bord Gáis price increase is generally followed by an increase from other suppliers.
In a statement referred to by Moynihan, Bord Gáis Energy Managing Director Dave Kirwan said that the company had been working with the CER striving to minimise the effect on Irish householdand that “Bord Gáis Energy recognises that price increases have an impact on customers, particularly in these difficult times.”
Reason for these latest price hikes are related to a drop in consumption amongst Irish consumers. According to the report on bonkers.ie, Bord Gáis has calculated that lower consumption will lead to a shortfall of €3.714 million by October 2014 – which is what they applied to the regulator to recover. Though ensuring that such a shortfall is covered would actually entail a 3.47% price increase, the CER said they wanted to ensure that “tariff increases are kept to a minimum for consumers,” and decided not to approve such an increase in price, which is a little good news, amongst quite a lot of bad.