‘Contemptible’ and ‘savage’ are the words that were used this week by Independent TD, Mattie McGrath to describe the request by Bord Gáis Energy to the Commission for Energy Regulation (CER) for an increase of over 7% in residential gas tariffs from this October.

“This request is absolutely outrageous. Only last September The CER approved an 8.5% rise in residential gas prices for the company and a massive 22% increase the year before that. Now they are planning another vicious price increase with no sign that there will not be more to follow.”

Deputy McGath said it makes a mockery of the CER’s claim to be acting in the interests of consumers and to ensure that prices are fair and reasonable.

“What is fair and reasonable about forcing many thousands of families and indeed the elderly into effectively choosing between heating and eating? We need an immediate overhaul of the role and function of the CER which is clearly either incapable or unwilling to stand up for the rights of the consumer against the monopoly of a company which already has 69% of the market.”

The CER is expected to make a final decision on the price rise application by the end of August following a public consultation and a detailed review of Bord Gáis Energy’s costs. Bord Gais has said that other factors affecting the tariff include continuing upwards pressure on future wholesale gas prices and increases in supply costs.

“Every time one of these hikes are proposed we have the usual line trotted out about supposed pressures and supply costs. It is simply not sustainable to keep on repeating this ridiculous argument,” said Deputy mcGrath pointing out that Bord Gais’s 2011 annual report alone shows that turnover grew by 5% to €1.608 billion and earnings before interest and tax increased by 4% to €343m and this was before the massive price hikes that were approved by the CER over the last 2 years.

“Bord Gais badly needs to realise that when it speaks about its core values being empathy, performance and proactivity to ensure that the customer is at the centre of everything, then this has to mean more than fine words in its charter,” concluded Deputy McGrath.