Bord Gáis announce price freeze for 625,000 customers 

The company says it won't be increasing residential gas or electricity prices until at least March of next year. File image.

Bord Gáis Energy has stolen a march on its rivals by announcing a price increase freeze for the winter.

Bord Gáis Energy managing director, Dave Kirwan, confirmed the freeze for the company’s over 625,000 residential customers, saying it would absorb added costs caused by increased network and system costs, unlike its competitors.

Both Electric Ireland and Prepaypower have announced impending hikes in bills over the past week.

Prepaypower announced an increase of 2.9% from October 4, paring back on a 2.5% reduction in electricity prices it announced in April.

Electric Ireland said “market-related costs which are out of the control of suppliers have increased”, causing it to increase their prices by 3.4% from October 1.

The increases would mean an extra €35 a year for the average customer.

Both firms came in for heavy criticism from customers over their hikes, with explanations demanded as to why they couldn't absorb the costs instead of passing them on.

Bord Gáis Energy in contrast said it would absorb the costs, and guaranteed no hikes until March.

Mr Kirwan said: “As the country faces its most challenging winter in a lifetime, Bord Gáis Energy will freeze its residential gas and electricity prices despite the increased network and system costs announced recently by the CRU. We will absorb these additional costs, which are outside of our control, and are guaranteeing no price increases for residential customers until at least March 2021.” He said the company’s commitment to passing on saving has been demonstrated by two price reductions for dual fuel customers in the last 12 months.

“In October 2019, we were the only energy provider to reduce prices before the winter period and we also reduced prices in May of this year. Combined, these two price reductions saved dual fuel customers an average of €97.53 per annum.” Network and system costs now account for approximately 40% of a customer’s energy bill, he added.

“We know this is a tough time for customers and that’s why we have committed to absorb these additional costs ahead of the winter period.’