The Commission for Energy Regulation has decided to direct both the ESB and Bord Gáis to change their prices for 2007.
Bord Gáis earlier confirmed that it will be reducing the price of gas by 10% from February 1 following an agreement with the energy regulator. It says this will lead to a saving of €120 a year for the typical residential customer. It had increased prices by almost 34% on October 1.
And ESB prices for domestic customers will now increase by 12.6% from January 1 instead of the almost 20% rise originally planned. Prices for SMEs will now rise by 12.5% and large industrial users by 12.2%.
The CER said the main reason behind today's decision has been the 'significant and consistent reduction' in fuel prices on the international markets where both ESB and Bord Gais purchase their fuel.
The Regulator said that wholesale gas prices had fallen by around 12% since the start of October, while oil prices have fallen by 14%.
'The reduction in fuel price coupled with other operational savings and changes have resulted in significant reductions for ESB and Bord Gáis, compared to projections earlier in the year,' the CER statement said.
