Gas customers are likely to face another big rise in their bills from October after the energy regulator proposed to award Bord Gáis an increase of nearly 34% in prices to home and small commercial and industrial customers.
Bord Gáis said the rise would mean an increase of 84c a day for the average residential customer. It comes on top of a 25% increase last October.
The company had applied for a 38% increase this time, mainly because of a sharp rise in the cost of buying gas.
The Commission for Energy Regulation said the cost of buying gas had increased by 50%, which Bord Gáis said had added €150 million to its costs.
David Bunworth, Head of Energy Supply for Bord Gáis, said customers had been shielded from sharp wholesale gas prices in the past by a number of long-term supply contracts which had now expired.
He described the increase as 'hugely regrettable' but unavoidable, as it was driven by global market conditions outside the company's control.
Mr Bunworth said wholesale gas prices were expected to stabilise from next year, and price reductions would be passed on to consumers if this happened.
The commission is inviting comments from interested parties by 11 August, and will make a final decision by 1 September.
The CER said it was conscious of the 'unprecedented' rise and its effect on customers, but it had taken an objective view and was obliged to act in a manner that would promote competition and safeguard supplies in the long term.
