Bord Gáis defies anger over VAT rise on bills

BORD GÁIS has made no apology for applying the increased VAT rate of 13.5%, which was to become effective from January 1, on bills for the November/December period.

Last night, a spokesperson for the company said the tax increase from 12.5% to 13.5%, contained in the December Budget, was implemented in accordance with the Department of Finance and the VAT office.

The company had been instructed to include the increased rate on all invoices being issued in the New Year despite the fact that these bills would be for consumption of gas before the Budget.

The Consumers’ Association of Ireland reacted angrily to the move and described the issuing of bills to consumers for usage during the November/December period at the VAT rate of 13.5% as an absolute disgrace.

“There has been more than sufficient time for Bord Gáis to agree the matter with the Revenue Commissioners, as has been the case with the ESB. Yet they sought to ignore what are difficulties for consumers whose family household budgets are already stretched beyond balance at this time,” a spokesman for the Consumers’ Association said.

“This is exactly what happened with telephone charges following on from the last VAT increase put through a Budget. Is it a case that we never learn or simply that when it comes to the quality of customer service Bord Gáis just can’t be bothered?” the spokesperson added.

Meanwhile, the energy regulator is considering Bord Gáis’s application for an average rise of 27% in domestic and industrial gas prices. Bord Gáis initially sought the full 27% rise but later indicated that it would accept a phased increase. Others said a phased increase was always on the agenda.

The company is now seeking a 14% increase If granted, the rise would add 13.72 to the average household’s

bimonthly gas bill of €98.