Bord Gáis has followed its competitors in the electricity market and announced a 4.8% increase to its standard charges. Gas price hikes have already been approved from October. The electricity hike by the company is the latest in a series of increases to utility prices by the energy providers.
The change reflects the company’s reaction to international energy prices and the Commission for Energy Regulation’s (CER) decision to sanction an increase in the public service levy. Earlier this year the CER released the results of its research, which said 20% of people had to pay their bills in stages.
The latest electricity price increase will add €51.31 to the annual bill of Bord Gáis customers. It is the second successive autumn that electricity costs have risen. Similar hikes have been made by Airtricity and Electric Ireland in recent weeks.
Bord Gáis said the change was caused by additional charges it has to pay for the distribution network and the rising price of wholesale gas, this is a major fuel in the production of electricity.
Managing director Dave Kirwan said: “Bord Gáis Energy regrets having to introduce this price increase which is due to factors beyond our control, such as a weakening euro and increasing international wholesale prices and networks charges.”
He also said Bord Gáis recognised the effect more expensive bills would have on householders.
“In the current climate, we know that many families are struggling to make ends meet, and we have therefore worked hard to minimise the overall level of the increase.
“We are committed to offering customers the best value that we can and will continue to have the lowest rate for standard electricity in the market.”
The changes will take effect from Oct 15.