Huge jump for gas and power bills

Northern Ireland consumers' electricity bills are to rise by a third

Gas and electricity prices in Northern Ireland are set to rise sharply from the beginning of next month.

Electricity bills will rise by a third, adding almost �150 to the average bill. It follows a 14% increase in July.

The 19.2% rise in Phoenix gas prices comes after a 28% increase just four months ago.

The increases have been blamed on the cost of wholesale fuel, and the utility regulator has warned householders face a "very serious situation this winter".

Stephen McCully from NIE Energy said the cost of generating electricity had gone up sharply in the past year, with gas prices rising by around 150%.

FUEL POVERTY VOTE RESULTS Should the NI Executive set up an emergency fund to help poorer households facing rising fuel bills? Yes  71.79%  No  28.21%  677 Votes Cast Results are indicative and may not reflect public opinion

"We don't make a penny more from this increase, this price increase is driven purely by the increase in our wholesale prices," he said.

'Truly shocking'

Consumer Council spokeswoman Eleanor Gill said although they accepted bills must go up to cover rising costs of wholesale energy, "these price rises are truly shocking for consumers and people will struggle to cope".

"Having considered all the information provided to us, we accept that Phoenix's level of increase bears scrutiny and is broadly in line with the rest of the UK," she said.

"However, NIE Energy's scale of increase is not and it needs urgent and further explanation - in just 10 months their rate of increase has almost doubled compared to the rest of the UK, even though we are told that global energy prices are behind these rises.

In just 10 months NIE's rate of increase has almost doubled compared to the rest of the UK Eleanor Gill Consumer Council

"The Consumer Council cannot accept an increase of this scale until this fundamental question is fully answered. In the absence of competition, consumers need to be fully satisfied that the regulatory system works."

Utility Regulator Iain Osborne said price rises were not approved "without extensive scrutiny".

"We regret having to approve major price rises and are conscious of the impact that this will have on household budgets in Northern Ireland.

"We have worked hard to try to minimise the burden of the increase on low income consumers in particular."

Social Development minister Margaret Ritchie said she had met the fuel poverty taskforce and would press the executive to take action on fuel costs.

"It is unacceptable that people have to live in cold conditions. That is why I'm brining forward the paper to the executive for action to be taken in terms of financial and other measures."

The Northern Ireland Manufacturing Focus Group's Chief Executive Bryan Gray said rises could be "potentially disastrous".

"These cost increases will put our manufacturing sector under huge pressure to remain competitive against foreign competitors who do business much more cheaply, whose power is less expensive, where wages are a fraction of what they cost here, and who have less distance to travel to market," he said.

The Northern Ireland Independent Retail Trade Association said the rise will have "dire consequences" for the economy.

"Independent retailers will have on one hand to try and remain competitive by absorbing this hike of 30% and on the other with consumers facing a 33% in electricity and 20% gas increase there is the very real prospect that they will be cutting back further on their grocery list," chief executive Glyn Roberts said.

E-mail this to a friend

Printable version