The Utility Regulator has published an information note explaining the changes to electricity regulated network and Public Service Obligation (PSO) tariffs in Northern Ireland that will take effect from 1 October 2010. On average, these tariffs will decrease by over 10%.
These charges, together with wholesale energy and capacity costs, the climate change levy, supplier charges and VAT make-up the total cost of electricity charged to businesses. For domestic customers (i.e. householders), the announcement on NIE Energy Supply’s tariff will take place in early September.
Shane Lynch, Director of Electricity at the Utility Regulator said:
“It is important to note that these tariffs only make-up around 20-30% of the final electricity bill, nonetheless, the 10% reduction is very welcome.
“Rigorous scrutiny by the Utility Regulator, together with a reduction in NIE’s allowed rate of return on investment, and the cancellation of the Kilroot Power Station generating contracts, have all contributed to these reductions.”
ENDS
For further information, contact Adele Boyle on 028 9031 6343 or 07794 965922.
Notes to Editors
1. The Utility Regulator (Northern Ireland Authority for Utility Regulation) is the independent non-Ministerial Government Department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.
2. The Buyer’s Guides explain the typical components of an electricity bill.
3. The maximum amount that suppliers can collect from the regulated charges each year is approved by the Utility Regulator or the SEM.
4. The changes to charges approved by the SEM Committee are also included in the information note.
5. NIE have forecast a total demand for electricity in 2010/11 of 8,444GWhs (gegawatts hours) compared to 8,348GWhs forecast for 2009/10. This has caused a reduction in the average unit cost of electricity.
6. The Public Service Obligation (PSO) will reduce from 0.549 pence per unit (kwh) to 0.491 pence per unit (kwh).
7. The impact on individual business customers will vary depending on their demand profile and connection voltage.