Business Irish

Tuesday 26 September 2017

Gas prices under pressure

Tom Lyons

THE crisis in the Eurozone threatens to push up all our gas bills. Michael O'Sullivan, Bord Gais Group finance director, warned on Friday that "the risk is more on the upside than on the downside".

O'Sullivan said his state agency buys 94 per cent of its gas in sterling, meaning that every time the euro weakens the likelihood of price hikes goes up.

"We will be putting in our proposal to the Commission for Energy Regulation (CER) in July," O'Sullivan said, but things don't look good.

"What's going on in the Eurozone -- the Greek crisis, the Spanish situation -- means there's a big currency risk," he added.

The CER earlier this year indicated a low double-digit gas price rise was on the cards, but it will only fully decide and jack up our bills on October 1.

The state-owned utility turned in profits before tax of €94m last week, down 15 per cent on the previous year. It is also working on setting up a state water agency with the Department of the Environment.

Sunday Indo Business

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