Gas bills are set to fall by around 11 per cent, following a fall in the cost of supply.
The Commission for Energy Regulation has confirmed today that it has approved the reduction for Bord Gáis, which will see customers save an average of 10.6 per cent, or around €100 a year.
The reduction in gas prices has been driven by falling wholesale gas prices and a "significant reduction" in gas network costs, the commission said in a statement today.
It said transmission and distribution tariffs were down by 11 per cent and more than 1 per cent respectively for 2007/08, as a result of cost savings imposed by the commission.
This is the second reduction in gas prices this year, following a 10 per cent reduction in January.
The commission has also approved new tariff structures for Bord Gáis.
Following consultation with gas users the Commission has reduced the standing charge which will be paid by the average customer from €308.58 annually to €56.75 per a year, it said.
It said following the pricing changes customers in three bedroom house would save on average €100 annually, while those with in two bedroom apartments could seen savings of 25 per cent over the year.