MORE THAN 600,000 gas users will save an average of €53 a year on their bills following the energy regulator’s decision to approve an 8 per cent drop in prices.
The reduction will take effect from the start of next month and will apply to domestic and smaller industrial and commercial customers, the Commission for Energy Regulation announced yesterday. The overall reduction in energy costs will be smaller because the standing charge is not being changed.
The cold winter weather has increased demand for gas and is likely to push prices back up again later in the year.
The commission said it had decided to confirm the 8 per cent cut sought by Bord Gáis because international gas prices had fallen. It also cited changes in exchange rates and correction factors from last year as reasons for passing on the reduction as soon as possible.
An Bord Gáis welcomed what it said would be the third reduction in gas prices in less than a year – giving a cumulative decrease of over 25 per cent since last May.
However, Fine Gael enterprise spokesman Leo Varadkar called on the Government to ensure electricity bills, bus and train tickets and taxi fares were also reduced.
“The regulator’s decision to cut gas prices is a welcome break for businesses and households, who have had to pay over the odds for far too long,” Mr Varadkar said.
He claimed that Fianna Fáil was “notoriously unwilling” to lower prices. “These artificially high prices have imposed unnecessary hardship on households and have made Ireland one of the least competitive places for business.”
Fine Gael energy spokesman Simon Coveney said the reduction was a step in the right direction.
The commission said it would review gas prices in the summer.
