Utility Regulator comments on firmus energy’s gas tariff announcement

Following firmus energy’s announcement that it will be increasing its gas tariffs for domestic and small business customers, Kevin Shiels, the Utility Regulator’s Director of Retail and Consumer Protection commented:

"We understand that price increases are not welcome and have thoroughly scrutinised firmus energy’s actual costs to supply gas to homes and businesses in the Ten Towns area. The main reason for this tariff change is due to the increase in international wholesale energy costs.

“We only regulate firmus energy’s tariff in the Ten Towns area, and whilst this 12.2% increase comes as we enter the spring, we recognise the impact it will have on customer budgets. Our scrutiny involves a thorough analysis of all of the company’s cost elements, and we act on behalf of consumers to ensure the price they pay reflects the actual costs of supplying the gas to their homes and businesses.

“This increase will leave the firmus energy domestic tariff for the Ten Towns lower than the average standard tariff in the Republic of Ireland and in line with the average standard gas tariffs in Great Britain. This price increase comes after two consecutive price decreases. 

“The increase in international wholesale energy costs has also affected the price of petrol and home heating oil. We will continue to monitor firmus energy’s costs, and should wholesale gas costs or other cost elements decrease, we will act as soon as possible to ensure that this reduction is reflected in consumer bills.”

The tariff increase will come into effect on 31 March 2017. Today’s announcement follows the ongoing tariff review process that is carried out by firmus energy and the Utility Regulator, in consultation with the Department for the Economy and the Consumer Council for Northern Ireland.

A briefing paper on the tariff review is available here.

ENDS

For further information, please contact Adele Boyle on 028 9031 6664 or 07787 279584.

Notes:

The Utility Regulator is the independent non-ministerial government department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.

This firmus energy Ten Towns standard tariff is in line with the average standard gas tariffs of the big six suppliers in GB. Both have VAT rates of 5%.

This firmus energy Ten Towns standard tariff is 10% lower than the Bord Gais standard gas tariff in the RoI. This includes VAT at 13.5% in RoI and VAT at 5% in NI.

The Ten Towns and Greater Belfast areas are two separate markets, with different distribution network operators.

The Ten Towns area is: Derry/Londonderry, Limavady, Coleraine (including Portstewart and Bushmills), Ballymoney, Ballymena (Broughshane), Antrim (including Ballyclare and Templepatrick), Craigavon (including Portadown and Lurgan), Banbridge, Newry (Warrenpoint) and Armagh (Tandragee).

The Greater Belfast area covers: South, West, East and North Belfast; Carrickfergus; Newtownabbey; Duncrue and Harbour; Lisburn; Carryduff; Castlereagh; Ballygowan; Newtownards; Larne; and North Down.  

Home heating oil has increased by around 65% in the past 12 months (based on CCNI costs for 900 litres on 23 February 2017 (£365.35) and 25 February 2016 (£219.92).

Most recent tariff changes are detailed below: