Bord Gais has announced its annual results for 2005 with a warning to consumers that gas prices are set to increase further and soon.
Speaking on RTE Radio this morning, Bord Gais CEO Gerry Walsh said the company was seeking a price rise of between 30-40% from the energy regulator. He said any increase would not increase the company's profits.
Bord Gais today reported a 9% fall in pre-tax profits for 2005 to €108m from €119m in 2004. The company blamed the drop on the 'significant' price increases on the international wholesale gas markets.
Turnover rose by 13% to €857m for 2005, driven by the increase in sales of gas and electricity. The company's share of the electricity supply market rose to 8% by volume with sales in electricity up 30% to €161m. This is one fifth of group turnover.
The company said it intends to secure its position in the Irish electricity market by developing an independent power generation plant. Last month it announced plans to seek approval to develop a gas fired power plant in Whitegate in Cork, which is set to cost €300m.
Gas sales rose by 11% to €552m in 2005. The number of gas users in Ireland exceeded 540,000 by the end of the year, an increase of 7% on 2004.
A key milestone in 2005 was the connection of Bord Gais' first natural gas customer in Northern Ireland. This followed the completion of the North West pipeline, connecting Carrickfergus in Co Antrim to Derry City, and the winning of licences to distribute and supply ten towns in the North.
This development is part of the company's €1.5 billion capital expenditure programme. Bord Gais continues to invest heavily in the construction of gas infrastructure. At the end of 2005, the company said it had completed 71km of the 149km Mayo-Galway pipeline, construction of 339km of distribution pipeline and renewal of 199km pipeline.
Last year also saw the granting of planning permissions and consents for the North South pipeline, which will link Gormanstown in Co Meath to Ballyclare in Co Antrim.
'2005 was a challenging year for the energy sector and by extension Bord Gais,' commented CEO Gerry Walsh. 'All indications point to an even more challenging year in 2006,' he warned.
'Against this backdrop, as a dual fuel provider operating successfully in Ireland and Northern Ireland, we hope to build on our 2005 performance and continue to deliver shareholder value through delivering competitive, long term, secure and quality national gas and electricity services to our growing customer base,' he added.
