Gas Networks Ireland Allowed Revenues and Tariffs for Transmission and Distribution
These papers outline the CRU's decisions regarding Gas Networks Ireland's (GNI) allowed revenues and the transmission and distribution tariffs that will apply from 1 October **** to 30 September ****.
These tariffs are calculated under the current price control (PC5), which sets GNI's allowed revenues over the five-year period from October **** to September ****.
For *******, the combined transmission and distribution network tariff changes result in a modest increase in the networks element of the average residential gas customer's annual bill.
Based on an annual consumption of 11,000 kWh, the CRU estimates this increase to be approximately €1.28, or less than 1% per annum.
This follows a more substantial increase in *******, when the CRU estimated an average residential bill increase of €***** (or 3.9%) per annum.
That increase reflected GNI's recovery of deferred costs from previous years, following measures taken to shield customers from sharp price rises in ******* and *******.
For *******, GNI's base revenues were brought back in line with the PC5 price control decision, resulting in a step change in tariffs.
In contrast, the ******* tariffs reflect a continuation of that adjusted revenue level, meaning there is no comparable step change this year, resulting in a relatively modest increase.
While the increase this year is modest, future network tariffs are likely to face upward pressure due to the costs associated with decarbonisation and the broader energy transition.
Lower projected gas demand over time, driven by increased energy efficiency, electrification, and climate policy, is expected to reduce the volume of gas transported through the network, placing upward pressure on future gas network tariffs.
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