Bord Gáis in 12% price rise

BORD Gáis electricity customers will see prices rise by 12% in just over two weeks.

This was confirmed yesterday by the company, which is hiking prices because of the rising cost of oil and gas internationally.

The move is a blow to consumers facing interest rate hikes and rising food costs.

The company also expects the Commission for Energy Regulation will approve price increases of 20%-30% for residential gas customers from October 1, following a consultation that is due to commence shortly.

Such increases will result in a jump of €300 in the annual gas and electricity bills for customers.

Managing director of retail and trading at Bord Gáis, Jason Scagell, said they recognise the strain households are under and have done their utmost to limit the overall price increase to 12% “despite much higher increases in international wholesale prices”.

“We have been able to do this through a well executed procurement strategy that hedged our exposure to wholesale increases and enabled us to maintain retail prices at the same level for the last 20 months.”

Bord Gáis is urging customers who are having difficulties meeting bills to contact it immediately.

Bord Gáis has 435,000 residential electricity customers. The average annual Bord Gáis residential electricity bill is €989 and gas bill is €689.

This is the first time Bord Gáis has increased prices since entering the residential electricity market in February 2009 and it follows two price cuts of 15% in May and October 2009. It said that since then wholesale electricity prices have risen by over 20%.