Gas prices frozen until October
Bord Gáis Energy Supply has today announced that natural gas tariff prices for residential and SME customers will remain frozen until at least October 2008.
Despite significant volatility in the wholesale gas and oil markets, which has resulted in significant price increases by other European energy companies, Bord Gáis Energy Supply is in a position to hold its current prices due to "prudent procurement".
In accordance with regulatory agreements, Bord Gáis builds a portfolio of gas more than 12-16 months ahead, purchasing gas forward in a gradual or "laddered" approach.
This means that price changes are smoothed over time, avoiding the frequent fluctuations experienced in UK and European markets.
"We’re delighted to be able to confirm a price freeze for our customers during this unprecedented time of high energy costs and economic instability," said David Bunworth, head of energy supply at Bord Gáis.
"With the typical household bill down by 20% since January 2007, our new simplified tariffs, and many other service improvements introduced during the year, we are affirming our commitment to providing our customers with energy that’s efficient and economical and a quality of service that’s second to none."
This price freeze means that natural gas remains the cheapest fuel for home heating in Ireland: 27% cheaper than oil, 23% cheaper than coal and 21% cheaper than electricity.
In addition, natural gas produces 30% less emissions than oil, a factor that will increasingly dominate energy buying choices in the future.
