Following the announcement by SSE Airtricity Gas Supply that it will be increasing its gas tariff by 7.6% for domestic and small business customers, Kevin Shiels, the Utility Regulator’s Director of Retail and Consumer Protection commented:
“Although this is the first gas price increase since 2013, we recognise the impact that it will have on households and small businesses. Increases in energy prices are never welcome; we therefore only approve a tariff increase after extensive scrutiny.
“The main reason for this tariff change is due to the increase in international wholesale energy which has resulted in significant cost increases for SSE Airtricity Gas Supply. We have also seen this increase in international fuel costs affecting the price of petrol and home heating oil. We regulate the prices that SSE Airtricity Gas Supply can charge to its customers in the Greater Belfast area and have carefully reviewed each element of this new tariff.
“This increase will still leave the SSE Airtricity Gas Supply domestic tariff for Greater Belfast lower than the average standard tariff in the Republic of Ireland and amongst the lowest standard gas tariffs in the UK. This price increase comes after three consecutive price decreases.
“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. We will continue to monitor these costs, and should wholesale energy or other costs 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 from 31 March 2017. Today’s announcement follows the ongoing tariff review process that is carried out by SSE Airtricity Gas Supply 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 SSE Airtricity Gas Supply standard tariff is lower than the average of the standard gas tariffs of the big six suppliers in GB. Both have VAT rates of 5%.
This SSE Airtricity Gas Supply standard tariff is 26% 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 Greater Belfast area covers: South, West, East and North Belfast; Carrickfergus; Newtownabbey; Duncrue and Harbour; Lisburn; Carryduff; Castlereagh; Ballygowan; Newtownards; Larne; and North Down.
An announcement from firmus energy (for the Ten Towns area) is expected later in March.
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:
| Effective from date | Movement in SSE gas tariff |
|---|---|
| 1 April 2013 | +8.7% |
| 1 April 2015 | -7.8% |
| 1 October 2015 | -10% |
| 1 April 2016 | -10.2% |
| 31 March 2017 | +7.6% |