‘Corrib will not impact charges’

GAS flows from the Corrib gas field in future years are unlikely to lead to lower fuel charges for customers who are facing further price increases for gas and electricity early next year.

The Commission for Energy Regulation warned yesterday that ESB and gas bills are set to increase further from January 1 due to sharp and consistent increases in international fuel prices over the past 12 months.

The bad news for consumers was confirmed by commission representatives at a hearing of the Joint Oireachtas Committee on Communications, Energy and Natural Resources yesterday.

The Commission for Energy Regulation’s commissioner, Dermot Nolan, also predicted that production from the controversial Corrib gas field off the Mayo coast would have little effect on prices for consumers over the coming years.

“Corrib will improve security of supply, but it is unlikely to have any impact on price. Corrib gas prices will track international wholesale gas prices,” said Mr Nolan.

Fuel prices have already soared this autumn following a 17.5% increase in electricity prices on August 1 and a 20% increase in gas prices since September 1.

“Bord Gáis and ESB have already contracted for the majority of gas and other fuels for winter,” explained Mr Nolan. However, he claimed the agreement negotiated whereby the ESB will provide a €300 million rebate to electricity customers will help to offset the January price increase by up to 10%.