Wednesday 20 September 2017

Second gas provider to hike charge

Charlie Weston Personal Finance Editor

A SECOND gas supplier has said it plans to hike its prices next month.

Just a day after Bord Gais got permission to raise its prices by 2pc, Electric Ireland said it would impose a similar increase in October.

The move is set to see the annual cost of gas for the average family come close to €1,000.

And Electric Ireland, which used to be called ESB, said it was also considering an electricity price hike for households.

Energy experts said it was now likely that a family using both electricity and gas will end up paying more than €2,200 a year.

"An electricity price rise is under consideration, but no decision has been made on it yet," a spokeswoman for the semi-state company said.

Electricity prices are already due to go up by close to €20 a year to cover subsidies for the generation electricity from wind and peat. But there is likely to be separate hikes in electricity tariffs.

Now two suppliers are pushing up gas prices by 2pc from the start of October, in a move that will add just over €18 to the average family's annual bill.

Electric Ireland did not need to get permission for its price rise from the regulator, as it has a small slice of the residential gas market.

Bord Gais had sought a 7pc rise from the regulator, but was only granted a rise of 2pc.

A succession of gas price rises have seen the average cost for householders jump by €250 in the past two years.

Irish Independent

Also in Business