Charity ‘disappointed’ as gas bills to rise from next month

Household gas bills will rise from next month following a decision by the energy regulator to sanction an increase.

The 2.04% increase is, however, substantially less than the 7.22% rise Bord Gáis had sought. The increase will add close to €20 to the average annual household bill.

St Vincent de Paul last night said it was “disappointed” that the price hike had been approved.

A spokesman said it was the “cumulative effect” of a succession of household costs — in particular school-related costs — that added to the pressure on those already struggling to pay their bills.

“We made a submission pointing out that another increase would add to hardship and we asked that it not be implemented, so we are very disappointed that it is going ahead,” said the spokesman.

The State-owned supplier blamed the hike on the “rise in network tariffs”, mainly transmission costs, which are set by the Commission for Energy Regulation as part of a separate regulatory process.

“Bord Gáis Energy regrets that a price increase is necessary, and although networks tariffs are beyond our control, we continue to do everything we can to deliver good value for our customers” said Dave Kirwan, managing director of Bord Gáis Energy.

Bord Gáis said it was committed to working with customers to help them manage bills via payment plans, pay-as-you-go meters, and an option letting customers spread their energy payments over the course of the year.

According to Bord Gáis, the 2.04% increase will add €18.42 (including Vat) to an average residential gas bill annually, based on the CER average consumption of 13,800kWh.

Eoin Clarke, head of price comparison website uSwitch.ie said the price hike was “a warning to all consumers that price hikes are back on the agenda”.

“In the past, we’ve seen other gas suppliers follow Bord Gáis Energy and increase their prices,” said Mr Clarke.

He said that, given the average household energy bill is “already an eye-watering €2,140 a year”, it’s “important that consumers take action now to reduce the cost of their bills”. They could do this by using less energy or by switching to a more competitive tariff.

This is the third year in a row that gas prices have gone up. The new hike kicks in on Oct 1.