No deregulation of market as Bord Gáis too dominant
In a report published, the CER stated that unless Bord Gáis were to change its name and rebrand the company, it will have to reduce its dominance in the gas market before deregulation can take place.
“The CER has concluded that at this point in time, the criteria for deregulation have not all been met to allow for the immediate deregulation of the domestic gas market. While a number of criteria have been met, the 55% market share criteria for deregulation has not been reached. This is the lower of the two thresholds and applies where Bord Gáis Energy does not rebrand,” the report stated.
A spokesperson for Bord Gáis said that the company would be unwilling to give up its name as it is of critical importance.
“Given the strength and equity of the Bord Gáis Energy brand and the importance of this during the current sale process, there is no plan to rebrand.
The CER requires Bord Gáis Energy to have a share of customers of less than 55% in order to deregulate the market, however Bord Gáis Energy “has not yet met this threshold,” the spokesperson said.
Although full deregulation won’t take place until Bord Gáis is below 55% of the market, Energia announced yesterday it would enter the Irish gas and energy market.
The company is guaranteeing savings of up to 15% off standard rates for both gas and electricity.
Ian Thom, group chief, said that the company was committed to bringing savings to Irish people.
“Our commitment to the Irish market is underpinned through our support for €1.2bn of investment in Irish energy infrastructure and today we are extending our competitive approach into the residential market for electricity and gas. We have the expertise and experience it takes to make a real difference for consumers. We look forward to bringing the benefits of competition and lower energy prices to homes throughout Ireland,” he said.
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