The Commission for Energy Regulation (CER) has given its approval to Bord Gais for a 9.1 per cent increase in the price of natural gas.
The price change will come into force on the April 1st and will affect domestic, small and medium industrial and commercial customers.
The rise will increase the average two monthly gas bill of €73 by €6.66, exclusive of VAT.
Bord Gais's had originally applied for a 14 per cent rise from January 1st back in October 2002. Updated forecasts during the assessment period had meant that the Bord's final submission was for an increase of 17 per cent from April 1st.
The CER said the main reasons for the increase were higher gas prices in the UK and increased gas transportation costs.
Bord Gais welcomed today's decision saying "the price changes follow an effective prize freeze maintained by Bord Gais since the mid eighties".
It said: "The current price of natural gas to residential customers in Ireland is almost 40 per cent cheaper in real terms than the price paid by Irish consumers in 1984."
The Commission said the increase for households will be reflected in the June 2003 natural gas bills while those customers billed on a monthly basis will see the changes in their May 2003 bills.
A 9.1 per cent increase in domestic natural gas prices will add 0.043 per cent to the annual rate of inflation, it said.