The announcement comes despite significant volatility in the wholesale gas and oil markets, which has resulted in significant price increases by other European energy firms.
Bord Gais stated that, in accordance with regulatory agreements, it builds a portfolio of gas supplies over 12 to 16 months into the future, purchasing gas in a gradual approach. This is reportedly to stabilize price changes over time, avoiding the frequent fluctuations experienced in the UK and European markets.
During 2007, Bord Gais Energy Supply reduced gas prices for domestic and small and medium enterprise (SME) customers by an average of 20%. The current prices will be reviewed by the Commission for Energy Regulation during the summer for the gas year starting October 1, 2008.
Bord Gais observed that the price freeze will mean that natural gas remains the cheapest fuel for home heating in Ireland. It is reported to be 27% cheaper than oil, 23% cheaper than coal and 21% cheaper than electricity.
David Bunworth, head of energy supply at Bord Gais, said: 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.
