CER agrees to rise in Gas Prices

30th July, 2011 title

IRISH ENERGY NEWS reports that The Commission for Energy Regulation (CER) has analysed the application made by Bord Gais for a 28% rise in its residential gas tarrifs from October 2011. The CER has proposed to disallow certain supply costs but has however, agreed to a 22% rise in the gas prices supplies by Bord Gais. The exact increase will be decided by the CER in late August.

According to the CER, the main reason for the requested rise is the higher wholesale cost of gas in the international markets. Nearly all of Ireland’s gas is bought externally in these markets. This cost accounts for half the price of gas paid by Irish customers and is outside of Ireland’s control. Wholesale gas prices have doubled in the last two years which means that a significant rise in regulated residential gas prices is now unavoidable.

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