The Commission for Energy Regulation has confirmed that household gas prices will fall by almost 10.6% from October, with a new tariff structure also approved which it says will make bills more reflective of consumption - giving consumers more control.
The CER said the move will lead to 'significant savings' for customers, with an average cost reduction of €100 per year.
Those with 'less than average' consumption can expect to save €165 - or 25% - over the course of a year, it said.
Taking into account a 10% price reduction already announced in February, Bord Gais said the average household bill for the year will be 20% lower - a fall of around €200.
Bord Gais also said annual gas prices for small and medium sized business users will fall by an average of 11.3% - the second cost reduction this year.
The Commission also today reduced the annual standing charge from €308.58 to €56.75.
It says it hopes this will encourage greater efficiency because a larger proportion of customers bills will relate directly to consumption levels.
Bord Gáis said today that customers will also see the 'simpler' tariff structures from 1 October.
The main tariff for household users will be a new standard rate, with the new standing charge of €56.75 a year (€9.46 per bill) and a flat unit rate for gas consumed.
Customers may avail of a tariff that has no standing charge, which has a higher rate for the first number of units per bill and a third option is the winter saver rate with a higher standing charge of €227 a year (€37.83 per bill) but includes a quantity of bundled units that are credited in wintertime, helping to even out bills.
The price cut and annual charge reduction were both proposed in early July.
The reduction in gas prices follows a fall in the price of wholesale gas prices, and there has also been a 'significant reduction' in gas network costs as a result of CER's five year review of Bord Gais Networks revenues.
