Bord Gais Energy's gas prices are to rise from next month.

The Commission for Energy Regulation has given the green light to a price increase of just over 2 per cent.

Bord Gais Energy had originally asked for an increase of 7.2 per cent, but the regulator said the company's projected costs were higher than necessary.

It said the smaller increase had been approved simply because of the rising costs of importing gas from Britain, and because of falling demand.