Bord Gais to Increase Prices from October 2008

 
Bord Gáis is expected to apply to the energy regulator to increase prices to consumers by over 15%.
Ireland imports most of the natural gas it uses.

Bord Gáis said its gas sales increased by 8% to €763m, while electricity sales rose by 18% to  €239m. It currently holds about 8% of the electricity market in Ireland.In 2007, Bord Gáis said that gas demand rose with sales volumes up 14% and gas customer numbers exceeding 607,000 by the end of the year, up 5% on 2006.Bord Gáis has reported pre-tax profits of €166m for 2007, up 29% on the figure of €129m the previous year. Turnover rose by 10% to €1.215 billion.

On the back of ever-increasing energy prices, the company said that a price increase is ‘unfortunately’ likely in October 2008 and it has applied to the Energy Regulator for an increase, likely to be in the region of 17-19%.
The company also announced that it plans to enter the residential electricity supply market before 2010 as it aims to increase its customer base to over one million by 2014. It said it is investing €1 billion in existing and €1 billion in new business assets.

Indigenous gas supplies, specifically from Kinsale Gas Field, accounted for 13% of total Irish gas demand during 2005. Bord Gais states that this proportion could be significantly increased if additional indigenous gas supplies from the Corrib Field come onshore, supplying up to 60% of Ireland’s annual demand at peak production.On the issue of gas supply, Gerry Walsh said; We are very comfortable on the issue of security of supply of natural gas. Bord Gáis currently sources the majority of its gas supplies from wholesalers of UK North Sea gas fields. Going forward, we want to secure part of the new indigenous supplies from the Corrib gas field for our portfolio, as well as continuing to source gas from suppliers to the UK market”.

 

 

Development of gas infrastructure plays an important role in Bord Gáis’ expansion strategy. In the context of its €1.5 billion capital expenditure programme (from 2005 – 2009), of which €250 million is earmarked for Northern Ireland, Bord Gáis continues to invest heavily in the construction of gas infrastructure. At the end of 2005 the company had completed 71km of the 149 km Mayo-Galway pipeline; construction of 339km of distribution pipeline and renewal of 199km of pipeline as part of the ongoing mains renewal programme. In addition, 2005 saw the granting of planning permissions and consents for the South North pipeline to be built in 2006, which will link Gormanston in Co. Meath to Ballyclare in Co. Antrim.

Sources:

http://www.finfacts.com/irelandbusinessnews/publish/article_10005783.shtml

http://www.rte.ie/business/2008/0514/bordgais.html?rss

http://www.rte.ie/news/2008/0514/gas.html

 

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