SSE Airtricity Gas Supply has today announced a 39% increase to its regulated tariff for domestic and small business customersi in the Greater Belfast and Western distribution areas. This will mean that the average domestic gas bill will increase by £244, to £870 per year from 1 April 2022.
Commenting on the announcement, John French, Chief Executive of the Utility Regulator said:
“In January 2021, SSE Airtricity submitted an application to the Utility Regulator for a review of their regulated gas tariff. We have now completed our analysis of their application and undertaken a consultation with both the Department for the Economy and the Consumer Council for Northern Ireland on the proposals. This review process has concluded and SSE Airtricity Gas Supply’s regulated tariff will increase by 39% on 1 April 2022.
“The table below shows a comparison of regulated energy prices between the GB price cap and regulated energy prices in Greater Belfast and Western areas:
|
GB gas and electricity price cap (credit meter and paying via Direct Debit) |
£1,971 per year |
Effective from 1 April 2022 |
|
GB gas and electricity price cap (prepayment meter) |
£2,017 per year |
Effective from 1 April 2022 |
|
|
|
|
|
Greater Belfast and Western distribution areas – regulated gas (SSE Airtricity) and regulated electricity (Power NI) – (credit meter and paying via Direct Debit) |
£1,493 per year |
Effective from 1 April 2022 |
|
Greater Belfast and Western distribution area - regulated gas (SSE Airtricity) and regulated electricity (Power NI) – (prepayment meter) |
£1,513 per year |
Effective from 1 April 2022 |
“The cost of wholesale gas has increased significantly over the last seven months largely due to Russia reducing the supply of natural gas into Europe. However, today’s announcement does not take into account the further upward wholesale price pressures we have seen since Russia’s invasion of Ukraine. We will therefore need to keep this tariff under review, as this unfortunate conflict has significantly exacerbated the volatility and price movements within the market. Regrettably, it is highly likely that a further increase to tariffs will be needed at some point.
“I would encourage anyone worried about paying for their energy bill to contact their supplier as soon as possible. There are also a number of agencies who can provide free and independent advice, including Advice NI, Money and Pensions Service and Christians Against Poverty.
“Throughout the past year, we have been working with government, the Consumer Council and energy suppliers to try and mitigate the effects of these energy price increases. We established a working group with the Department for the Economy, Department for Communities and the Consumer Council for Northern Ireland to actively explore what practical measures can be brought forward to alleviate the burden of these higher prices on consumers. I am pleased that the Northern Ireland Executive has provided significant funding to support local energy consumers.
“I have also written to all energy suppliers and reminded them of their regulatory obligations to avoid customer disconnections and consider other approaches to protecting customers in debt.”
Information on the government energy support schemes is available at www.nidirect.gov.uk/covid-19-energy-debt-advice. The Consumer Council’s website has energy advice for consumers during these difficult times and also provides an independent energy price comparison tool to help consumers save money. The NI Energy advice line also offers free comprehensive advice on saving energy in the home and energy efficiency grants.
A briefing paper has also been published.
[1]Business customers using less than 2,500 therms per annum.
Further information:
- Media contact - Adele Boyle, 07787 279584.
- This tariff review commenced in January 2022 and covers around 180,000 customers in the Greater Belfast area. The review also covers customers in the Gas to the West area where over 2,300 customers are connected.
- The average domestic credit customer will see their bills increase from £626 per year to £870 per year.
- The SSE Airtricity Gas Supply standard tariff will be 13% less than the GB price cap. Both have VAT rates of 5%.
- The SSE Airtricity Gas Supply standard tariff will be 2.5% lower than the Bord Gais standard gas tariff in the RoI. This includes VAT at 13.5% in RoI and 5% in NI. Exchange rate of 0.84 rate used in calculation.
- 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.
- There is also more information on support for natural gas customers from the new www.naturalgasni.com website.