Bord Gáis proposes to increase the charge levied on new homes connecting to the gas network to €220 from €150, a rise of 46 per cent.

The proposed increase is among a set of changes to the connecting charge regime operated by the company for several years. The charge to existing domestic homes is to remain unchanged at €220.

The energy regulator Tom Reeves wants connection charges to be geared from now on to cost and, unless there are strong industry objections, the new regime is likely to be adopted.

Developers building houses on new estates will have to pay the increased charge. According to a company document submitted to Mr Reeves, developers traditionally foot this kind of bill.

"Connections to new housing developments are commissioned by housing developers, normally via an infrastructure agreement that commits the developer to ensure that houses in the development use gas."

The document says that, in addition to the €220 charge, a further contribution may be required in the longer term after the connection is made.

The document says that if Bord Gáis extends its network, it needs to be able to earn a reasonable return on its investment.

"If Bord Gáis were to add uneconomic extension projects, gas prices would increase for all other users," the document states.

The document says the new regime should make connection charges easier for customers to understand and estimate.

The gas market is currently open to competition, but Bord Gáis remains the dominant supplier. Because of increases in international prices last year, Mr Reeves sanctioned a 25 per cent increase in prices for residential and small business customers.