The Utility Regulator today welcomed the 10.2% average decrease by SSE Airtricity Gas Supply in its regulated gas tariffs in the Greater Belfast area.
Commenting on the announcement, Utility Regulator Chief Executive, Jenny Pyper, said:
“I am delighted to be able to welcome SSE Airtricity Gas Supply’s reduction in gas bills for their 135,000 Greater Belfast domestic and small business customers from 1 April 2016. This reduction follows on from two price decreases in 2015, meaning that over the last year, these customers will have experienced a drop in prices of almost 24%*. Today’s announcement brings the regulated price in Greater Belfast down to levels last seen in 2009** and represents a saving to customers of over £53 per year.***
“This reduction comes on the back of Power NI’s 10.3% decrease to its regulated electricity tariff. This now means that the majority of Northern Ireland consumers are benefiting from amongst the lowest electricity and gas standard tariffs in the UK and RoI. Northern Ireland has also seen the largest decreases to date of gas and electricity prices by all suppliers in the UK and RoI.
“We initiated this tariff review in January 2016, which included a thorough analysis of all their cost elements. Customers of SSE Airtricity Gas Supply can be confident, that due to our regulation, their bills reflect the actual costs of supplying gas to their homes and businesses.
“The main reason for this decrease is falling wholesale gas costs, which have fallen by 44% in the past year. As these costs make up around half of the gas tariff, this decrease is reflected in the 24% fall in tariffs over the same period.
“Whilst we are enjoying a period of sustained low global wholesale gas prices, the gas market has traditionally been volatile and is at all times susceptible to price changes. As always, we will continue to look ahead and monitor wholesale gas costs in relation to SSE Airtricity Gas Supply’s regulated prices.”
This announcement marks the conclusion of the tariff review which is undertaken by the Utility Regulator and SSE Airtricity Gas Supply, in consultation with the Department of Enterprise, Trade and Investment and the Consumer Council for Northern Ireland.
Referring to SSE Airtricity’s announcement to reduce their electricity tariff, Jenny said:
“Whilst we don’t price regulate SSE Airtricity in respect of their electricity prices, their 10.3% reduction is further good news for consumers, which we welcome.”
ENDS
For further information, please contact Adele Boyle on 028 9031 6664 or 07787 279584.
* Movement in maximum average price from 133.26 pence per therm up to end of March 2015 to 101.01 pence per therm from April 2016.
**
Effective from date Approved Maximum Average Price (pence per therm)
01-Oct-09 96.32
01-May-11 133.97
01-Apr-12 122.64
01-Apr-13 133.26
01-Apr-15 125.17
01-Oct-15 112.50
01-Apr-16 101.01
*** Based on a domestic customer with an annual consumption of 12,500kWh
The briefing paper on the tariff review is available here.