Bord Gáis Energy (BG Energy) has applied to the Commission for Energy Regulation (CER) for a 7.54% rise in its residential gas tariffs from this October.

The CER has today published a public consultation paper on this matter. Following this public consultation and a detailed review of BG Energy’s costs, the CER will decide on the issue in late August.

BG Energy has indicated that it requested this gas tariff increase due to higher gas commodity costs and network tariffs. Gas commodity costs have risen because the value of the Euro has decreased considerably against Sterling over the last year, raising costs given that Ireland purchases virtually all of its gas from Great Britain. The upward pressure on network tariffs is due to a reduction in gas demand and higher financing costs for Bord Gais Networks, both of which are related to the economic situation in Ireland and abroad.

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In coming to a decision, the CER will only allow efficiently-incurred costs from BG Energy to be passed through to customers. If, following the public consultation and a CER review, a gas price rise is granted, it would be with regret given the current difficult economic climate.

Ireland's gas prices are expected to remain relatively competitive, even if an increase is decided on for this October.

(CD/GK)