Business Personal Finance

Monday 21 October 2019

Bord Gáis to cut gas price, hike electricity

 

Price rise is a surprise: Daragh Cassidy of Bonkers.ie
Price rise is a surprise: Daragh Cassidy of Bonkers.ie

Charlie Weston and Shawn Pogatchnik

Electricity customers of Bord Gáis will see prices increase at the end of next month, but natural gas costs are coming down.

Electricity unit rates and the standing charge are rising by 2.5pc from October 28. This will cost the average customer €17 more a year.

However, residential gas prices will go down by 4pc from the same date. The cut will decrease a typical gas bill by €32 a year.

Dual-fuel customers of Bord Gáis will see a net decrease of €14.83 a year on a typical bill.

Bord Gáis retail director Colin Bebbington said: "Factors beyond our control have led us to need to increase electricity prices. However we will continue to monitor costs closely and do all we can to ensure that our customers are receiving the best possible prices for their energy."

Daragh Cassidy of price comparison site Bonkers.ie said the increase in electricity prices was surprising, given that prices have been declining, not increasing, on wholesale markets in recent months.

He said that, conversely, the announcement of a reduction in gas prices by Bord Gáis does reflect those falling prices on wholesale markets.

"As a result, further small reductions (in retail gas prices) can't be ruled out in the coming weeks, although pricing remains quite volatile," he said.

Earlier this month energy supply experts Naturgy reported that wholesale gas prices in Ireland had fallen by 55pc over the past year, while wholesale electricity prices were 27pc lower.

Naturgy energy analyst Lauren Stewart said an expected seasonal decline in electricity output from wind generation could increase "upward pressure on prices as we head into the winter period".

But last month, she noted, Ireland experienced "a healthy supply of renewable electricity" that provided 31pc of Ireland's total generation and drove down wholesale electricity costs.

Irish Independent

Also in Business