Electric Ireland to boost gas prices by almost €3 a month from October

ESB plans to add almost €3 a month on average to its gas prices from the beginning of October in a second blow to consumers.

Electric Ireland said yesterday that it would increase gas prices by 2 per cent from the beginning of next month.

The company, which is part of the ESB, said this would result in an average increase of 35 cent a week on residential gas bills, which translates as €32.60 a year, or over €2.70 a month.

Its move follows an announcement from its rival Bord Gáis Energy that it too intends adding 2 per cent to its natural gas prices.

The Bord Gáis price rise will mean that its customers will pay €980 a year on average for their natural gas supplies.

Pipeline charges
Both companies blamed a jump in charges for use of the State's natural gas pipelines, which transport the fuel to homes and businesses, for their price increases.

That increase will benefit Bord Gáis, whose networks division owns and operates the pipelines. The Commission for Energy Regulation approved a 2 per cent increase to network charges recently. Bord Gáis actually sought larger increases.

Electric Ireland said that the increase is out of its control and applies to all gas consumers, regardless of supplier.

The company's executive director, Jim Dollard, said it regretted having to increase its gas prices. "We are extremely conscious of the financial pressures facing our customers and we have tried to minimise this increase," he said.

The State owns both Bord Gáis and the ESB. The pair supply gas and electricity to homes and businesses around Ireland.

Bord Gáis Energy is expected to be sold by the end of this year. The group’s networks division will remain in State ownership.