Gas prices down 11% today

Household gas prices are to go down by almost 11% today, the Commission for Energy Regulation (CER) said.

It follows a similar price reduction of 10% on February 1 as wholesale oil prices began to stabilise.

The latest 10.88% drop is equivalent to a reduction of about €100 in the average annual domestic gas bill.

Bord Gais Energy Supply (BSG) purchases almost 90% of its gas from the UK wholesale market, which is showing a downward price trend for this winter.

Current cost levels are running at about 14% of what they were in 2006.

There has also been a significant reduction in gas network costs as a result of CER's five-year review of Bord Gais Networks.

Network costs generally make up around 40% of the final end user price.

A spokesman said: "The Commission has ensured that any cost savings are passed directly back to consumers by Bord Gais."

The proposed development of new gas terminals in Britain and Europe has led to the significant decrease in the general price of wholesale gas since the summer of 2006.

The CER recently announced proposed changes to the structure of Bord Gais tariffs which should lead to more choice and value for money for consumers.