Bord Gais prices will rise next month

Bord Gais Energy had originally asked for an increase of 7.2%, but the regulator said the company's projected costs were higher than necessary.

It said the smaller increase had been approved simply because of the rising costs of importing gas from Britain, and because of falling demand.

The National Consumer Association says the increase will still squeeze many families at a difficult time.

"It still is 2%, and 2% more than a very significant number of this population can afford to heat their home or cook their food," said Dermot Jewell from the NCA.

"It's rather disappointing that it wasn't looked at in those terms."