‘EXCEPTIONAL INCREASES IN GENERATION COSTS’ THE REASON FOR RISING ELECTRICITY BILLS SAYS REGULATOR
Utility Regulator Chief Executive, Iain Osborne, today said that _‘exceptional increases in generation costs in the context of rapidly increasing global fuel prices are the reason for rising electricity bills’. _
The regulator was commenting on NIE Energy’s (NIEE) announcement of a 14% increase in bills.
The Regulator confirmed that it has scrutinised NIEE’s proposal for an in-year price increase, satisfying itself that NIEE has bought electricity economically, as per its licence obligation.
Mr Osborne added:
_“We have reluctantly agreed to this in-year increase and are conscious of the impact, alongside recent increases in gas bills, on vulnerable consumers in particular. We will make sure that its application across customer groups is both appropriate and fair.”_
Mr Osborne concluded:
_“ Whilst the Utility Regulator accepts that, on this occasion, rising generation costs have been a driver for higher electricity bills, it is important that energy companies and consumers recognise that setting electricity prices is a two way street. We will continue to work with the Consumer Council for Northern Ireland to scrutinise any proposed price increases, and we will also make sure, should these costs come down, that customers will see reductions in their bills”._
* More information about the electricity price increase.
* Full factsheet on rising energy prices
Notes for Editors
1. The Northern Ireland Authority for Utility Regulation (the Utility Regulator) is the non-Ministerial Government Department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.
2. Further information outlining the Utility Regulator’s specific view on the price increase by NIE Energy and rising fuel costs can be found on this website
Media contact: Greg Irwin (0779 4335860)