Vayu, the new energy supply firm, has announced a three-year, set-price gas supply offer to business, designed to win business from Bord Gáis, which was recently given the go-ahead to increase prices.

The company said the price freeze included a guarantee that, should prices drop during the period, Vayu would lower its set price to an agreed level.

Managing director Mr Tony Ennis said the price offer applies to large, medium and small customers. Operating for just five months, the company's customer base is made up of large gas users but it is pitching its new offer to a wider range.

Bord Gáis Éireann announced earlier this month that it will be introducing a 16 per cent price hike for its lower and middle-range business gas users.

However the price hike will not apply to users of more than 180,000 therms per annum.

Vayu, which includes a number of experienced energy sector executives on its board and which has ambitions to become a major player in the deregulated energy market, has set itself a target of winning 10 per cent of the Irish market by year's end.

It already has a number of large customers and has now set out to win low- to middle-range customers.

Mr Ennis said its price-freeze offer would allow businesses budget their energy costs and make substantial savings.

"Sudden price increases and higher energy tariffs can't always be passed on. Irish businesses need a mechanism to protect themselves from unpredictable, soaring costs. Our three-year price freeze will provide stability in this volatile period."

Some 230 large industrial users made up the first section of the market to become deregulated.

However, from July 1st, about 16,000 small and medium enterprises also become available as potential customers in a deregulated gas market.