Gas price cuts 'do not go far enough'

Business leaders today welcomed plans to cut gas prices, but insisted the move does not go far enough.

IBEC welcomed the announcement by the Commission for Energy Regulation (CER) of a 10.5% decrease in gas prices from October.

But while it welcomed the predicted saving for consumers and small businesses, it argued a more competitive market was required to bring prices down for the long-term.

The CER announced it has approved a 10.5% reduction in the price of gas, representing a reduction of around 100 euro in the average yearly bill for Bord Gáis customers.

But while it is the second time in recent months gas prices have fallen by 10%, consumers have seen a 34% increase in gas prices over the last year.

Head of Bord Gáis Energy Supply David Bunworth said: “We are very pleased today to announce that the vast majority of our customers will further benefit this year from another price decrease in the cost of natural gas.

“With this latest decrease, natural gas will now be over 20% cheaper than oil for home heating.

“While the international gas markets remain unpredictable, we are happy to confirm our proposed second price decrease this year.”

It is proposed that small and medium-sized business customers will receive an average price reduction of almost 12% from October.

But IBEC energy executive David Manning said a long-term approach to the energy market was required.

“Today’s announcement is welcome and reflects the decrease in international gas prices. However, gas prices are cyclical and rising international prices may push the price back up,” he said.

“The Government and the regulator must deliver a more competitive gas market in Ireland if consumers are to benefit from longer term competitive pricing.

“The Government and CER must together set out a plan outlining how stable competitive prices will be delivered.”