Flogas turns up the heat on Bord Gáis

CONSUMERS will benefit from a domestic gas supply price war as Flogas joins Bord Gáis in a battle for customers, offering 9% lower prices.

Flogas Natural Gas claimed yesterday it will always be cheaper.

It is offering customers a 9% discount on Bord Gáis prices, which it said is guaranteed until February next year.

Overall gas prices are set to drop by 8% from that month which will result in a 34% drop for customers in over a year.

The Commission for Energy Regulation (CER) made the announcement this week.

It also looked at electricity prices and concluded there is no scope for change at this time, though they will continue to monitor the situation.

The price reduction will bring the average price per consumer down by €53 to €684.

Homeowners have been enjoying increased competition in the domestic energy market over the last year.

Bord Gáis launched its Big Switch campaign in February, offering ESB customers 14% cheaper electricity.

More than 250,000 customers have switched to Bord Gáis since the launch.

Bord Gáis however is regulated in the gas market, meaning it cannot drop its prices without approval from the Regulator. Flogas is not regulated.

Bord Gáis is not regulated in the electricity market as it is not the dominant player.

Flogas is now launching its own attack on Bord Gáis for gas customers. It said it is the only competitor to them in the residential natural gas market.

Flogas entered the natural gas market following its deregulation a few years ago and is supplying natural gas via the existing Bord Gáis Networks pipeline to more than 15,000 customers.

It said if a customer would like to switch there are no changeover costs, no disruption to current natural gas supply and customers continue to use their existing natural gas meter.

A spokeswoman for Bord Gáis said it looks forward to competing with new entrants as they come into the Irish natural gas.

“The company encourages competition throughout the energy sector and is actively challenging competitors in the electricity market with a sustainable, secure and competitive offering to customers,” she said.

The Irish natural gas market was opened fully to competition in July 2007, which means that alternate suppliers can compete against Bord Gáis Energy in all market segments, including the residential sector.


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