Bord Gáis to ask for 40% price hike

Bord Gáis is to seek an increase in gas prices of up to 40%, it was announced today.

The state company, announcing its annual results for 2005, warned consumers that the hike was necessary to absorb rises in international oil markets.

Bord Gáis chief executive officer Gerry Walsh said the company was seeking a price increase of 30%-40% from the energy regulator.

He said any increase would simply cover escalating operating costs and would not contribute to the company’s profits.

The firm reported a 9% fall in pre-tax profits for 2005 to €108m, compared with 2004.

“2005 was a challenging year for the energy sector and by extension Bord Gáis,” Mr Walsh said.

“All indications point to an even more challenging year in 2006.”

Turnover rose by 13% to €857m for 2005, while the company’s share of the electricity supply market rose to 8% by volume.