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Bord Gáis Energy residential electricity prices to increase for the first time
Wholesale electricity prices have increased 20% since Bord Gáis Energy last cut prices

13.07.11

13 July 2011: Bord Gáis Energy is to increase its residential electricity prices by 12% from 1st August 2011. This is the first time that the company has increased prices since entering the residential electricity market in February 2009 and follows two successive cumulative price cuts of 15% in May and October 2009. The price increase is due to the significant increase in the cost of procuring commodities on the wholesale markets. Since the last residential electricity price cuts in October 2009, wholesale electricity prices have increased by more than 20%. Further, the wholesale price of gas, a key commodity used in the production of electricity in Ireland, has increased by 39% in the last twelve months, and on the basis of forward prices is currently priced 30% higher this winter than last.

Jason Scagell, Managing Director of Retail and Trading, Bord Gáis Energy, said: “We recognise the strain that households are under at the moment and we have done our utmost to limit the overall price increase to 12% despite much higher increases in international wholesale prices. We have been able to do this through a well executed procurement strategy that hedged our exposure to wholesale increases and enabled us to maintain retail prices at the same level for the last 20 months. The prices paid by Irish customers are intrinsically linked to international wholesale prices and with the markets signaling the prospect of higher winter prices, residential price increases have unfortunately become unavoidable. On this basis, we also expect that the Commission for Energy Regulation will approve price increases for residential gas customers from 1 October 2011, following a consultation which is due to commence shortly.”

He continued: “We urge any customers who are having difficulties meeting their bills, or customers who would like to opt for our Level Pay payment option and pay the same amount in their bill each month, to contact us immediately. We would also urge customers to look into energy efficiency initiatives which could help to offset rising prices and customers can contact us for advice and information in this area. We remain committed to working with customers to support them through this difficult time.”

ENDS

Notes to Editor:
  • From 1 August 2011, residential electricity customers are subject to a price increase
  • Bord Gáis has 435,000 residential electricity customers
  • The increase is 12% on the unit rate and standing charge elements of residential electricity tariffs, while the PSO levy will remain unchanged
  • The average annual Bord Gáis residential electricity bill is €989 and gas bill is €689
  • Further information on Bord Gáis Energy tariffs is available at www.bordgaisenergy.ie or by contacting us.
  • Bord Gáis will also be placing advertisements in the national press in advance of the price increase informing customers of the elements of the relevant tariffs that have changed. In addition, a message will be included on each customer’s bill from 1 August and an enclosed leaflet will also provide more detail.
  • Bord Gáis Energy entered the residential electricity market in February 2009 offering up to 14% discounts off the ESB’s regulated tariff. In May 2009, the company decreased the unit rate of the tariff by 11.3% and in October 2009 it was further reduced by 3.1%.
For more information

Larry Donald, Bord Gáis, 087 258 1787
Christine Heffernan, Bord Gáis, 087 050 5555