Phoenix Gas is still building its pipe network

Phoenix Natural Gas announced on Tuesday that it will be increasing prices to domestic and small business customers from 1 October by an average of 10.8%.

With one in three gas consumers in Northern Ireland living on less than �135 per week, the General Consumer Council said it was particularly concerned about the impact of the hike on the less well off.

Council chairman, Steve Costello said: "This price increase will add to the plight of many households who cannot afford to keep warm this winter.

"Northern Ireland has the highest level of fuel poverty of any region in the UK.

"Ironically this announcement comes at a time when many organisations - including government - are working hard to eliminate fuel poverty."

There is no doubt that the poorest and most vulnerable will bear the brunt of this increase Majella McCloskey NEA NI director

Mr Costello said consumers would find it difficult to understand the sheer size of the price increase, after three years of relative price stability.

He called on Phoenix Natural Gas to work urgently with OFREG, the watchdog body for the gas industry, to agree "an open, transparent and sustainable pricing policy."

Announcing the price increase, Phoenix chief executive Peter Dixon said any increase was unwelcome. However, he defended the decision.

"In our tariff changes, we took specific care to ensure that those consumers traditionally in fuel poverty are still able to affordably heat their homes, even after this increase," Mr Dixon said.

Peter Dixon: Raw gas prices have risen substantially

"Since 1997 Phoenix has been able to keep gas prices in line with the cost of living. However, recently raw gas prices have risen substantially and at this stage we have to pass on an increase of 5% to reflect these rises."

"We are in ongoing discussions with the Regulator and have been for the past 18 months, about the charge we should be making to recover the cost of the gas network with the aim of delivering stable gas prices over the next 40 years. We hope to conclude these discussions, to the benefit of consumers, soon."

OFREG chief executive Douglas McIldoon accused Phoenix of acting unilaterally in breaking a "very successful" relationship with the watchdog.

"Existing and prospective gas customers need and expect long term certainty that gas prices in Northern Ireland will not diverge from those in Great Britain in the same disastrous way that electricity prices have. Phoenix should act now to give customers that assurance," he said.

Fuel poverty charity, the National Energy Association, warned that the price rise would plunge thousands into fuel poverty.

NEA Northern Ireland director Majella McCloskey said the price increase was "disappointing news".

"Given that a third of gas customers are on incomes of less than �7,000 per annum and over 10% of users are aged 75 and over, there is no doubt that the poorest and most vulnerable will bear the brunt of this increase."