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Regulator approves 8.5pc gas price hike

Tuesday, September 04 14:24:21

CER, the energy regulator, this morning gave its approval for an 8.5pc hike in gas prices for Bord Gais Energy's residential users for the 2012/13 gas year.

This is more than Bord Gais had actually asked for, having requested a 7.54pc increase from the CER with the watchdog saying that the increase reflects rises in wholesale gas prices in euro terms in the intervening period between the request and today's decision.

The increase will take effect from 1st October 2012.

"BG Energy's submission requested E293m in allowed revenues for the 2012/13 gas year. This would equate to a 7.54pc increase in the current tariffs for BG Energy gas residential customers. In the intervening period the price of gas in euro terms has unfortunately continued to rise. In addition, the transmission and distribution tariffs for the forthcoming year have been finalised and have risen. BG Energy has submitted revised higher costs in these areas. The CER has reviewed the BG Energy submissions and taken into consideration the comments from interested parties. The CER has carefully examined BG Energy's request for a change to its supply cost. Following this the CER has decided to approve an 8.50pc increase in the BG Energy tariffs for its1 residential customers from the 1st October 2012," the CER said.