Electricity prices to fall — but gas bill hike likely

ELECTRICITY bills are set to fall — but the good news for householders has been tempered by the fact that Bord Gáis is looking for a price hike.

The re-branded ESB Electric Ireland will today announce a range of price plans that could chip almost €190 off average electricity and gas bills every year.

Customers can choose from electricity-only, gas-only or dual products as the company claims it is “very aware” of financial pressures on householders.

Under the new price plans, dual customers could save 17% on electricity rates and 6% on their gas usage, paying up to €190 less a year in bills based on average annual usage of 5,300kwh, or gas usage of 16,000kwh per year.

Those opting for electricity-only pricing can save up to €120 a year based on the same level of usage, while those selecting the gas-only option will make savings of up to 6% on regulated Bord Gáis energy unit rates.

There are savings of 9% on electricity through the company’s green electricity price option. The products will be launched as the company seeks to compete in the gas and deregulated residential electricity markets.

ESB Electric Ireland general manager Liam Molloy said: “We are very aware of the financial pressures on customers in the current environment.

“In developing our new electricity and gas price plans we are determined to provide customers with the best choice, value and products in the Irish energy market.”

However, Bord Gáis customers face the possibility of increased bills after it emerged the company is likely to seek regulatory approval for price hikes, possibly of 10% or more.

The Commission for Energy Regulation would have to grant approval for such a move, which is being sought on the back of increased competition and because of the effects of unrest in the Middle East on energy costs globally.

Bord Gáis has about 650,000 customers and the company is currently limited as to the prices it can charge because of a domestic tariff.

Global gas prices have risen sharply, with some experts arguing that they have passed the level of the Irish tariff, increasing the likelihood of Bord Gáis making a request for price rises here.

Any new charges would not come in until October, following a price review that is set to conclude in August.

Bord Gáis has asked for the gas market to be deregulated, as happened in the electricity market.

A company spokesman said there was “an inevitability” about price rises later in the year, claiming gas prices internationally had increased dramatically in recent months.