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Domestic gas customers are set to pay up to €10.54 more on average next year and the year after on their annual bills, following the energy regulator’s approval of Gas Networks Ireland’s (GNI) investment plans.
The Commission for the Regulation of Utilities (CRU) has given the green light to a €2.21 billion plan by the national gas network provider aimed at supporting the development and decarbonisation of its infrastructure.
Currently the 720,000 gas customers across the country pay network fees through the standing charges on the bills they get from their suppliers.
These network charges are used by GNI to develop and maintain the gas network across the country.
The CRU’s approval of GNI’s fifth price control plan (PC5) will see an initial increase of €10.54 per domestic customer in the 2024/25 tariff year, the CRU said, which will be recovered through network charges.
It added that this reflects an increase of less than 1% in customer bills, when compared to its estimated annual bill from last month.
The CRU said the PC5 decision would result in €1.16 billion in revenue being provided for GNI’s transmission operations, including the safe transport of gas to the island through interconnectors from Great Britain.
“This enables the connection of new gas-fired generation capacity to support security of electricity supply and facilitate the phase out of coal-fired generation,” it said.
A further €1.05 billion in revenue will go towards to the GNI distribution business, enabling the connection of new biomethane injection facilities to the natural gas grid and the safe transport of gas to customers on the national gas network.
“The PC5 decision provides sufficient funding for GNI to invest for security of supply and decarbonisation, as well as incentives to ensure that it delivers in a safe and efficient manner for the benefit of customer,” said Commissioner Aoife MacEvilly.
“As part of PC5, GNI will be incentivised to develop its future plans for decarbonisation, aligned with Government policy and our legally binding carbon ceilings.”
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