The energy regulator has announced there will be no increases in the price of gas or electricity next year.
The Commission for Energy Regulation (CER) said the price of gas supplied by Bord Gáis to residential customers and small businesses would not be increased in 2009 and there would be a small average decrease, of just less than 1 per cent, in the price of electricity supplied by ESB.
In making its decision, the Commission said it had taken into account recent falls in the price of gas, coal and oil on the international fuel markets.
The regulator said it had also been careful “to ensure prices are cost reflective so as not to distort competition in the retail gas and electricity markets”.
In early November Bord Gáis had proposed a price increase of on average 3.9 per cent, while the ESB had proposed a 5.6 per cent increase.
Bord Gáis this evening welcomed the decision, saying "given the current economic conditions facing our customers and the continued drop in oil and gas prices, we are pleased that the CER has decided to maintain prices at their current level.”
“We are committed to passing on the benefits of any further falls in wholesale gas prices, as we did previously in 2007," said managing director of energy supply at Bord Gáis David Bunworth said.
The National Consumer Agency ‘s chief executive Ann Fitzgerald said: “This is very welcome news as it indicates that savings resulting from the sharp decrease in international fuel prices are being passed on to the end user, which is good news for consumers especially as we are moving into tougher economic times."
Employers’ group Ibec also welcomed the decision but expressed concern that energy costs in Ireland continued to damage competitiveness.
Ibec Head of Business Infrastructure Donal Buckley said: "While today's announcement is welcome, Irish
business has already had a 20 per cent rise in gas and a 17.5 per cent rise in electricity
in September 2008, which cost an estimated €375 million."