Utility Regulator concludes review of regulated gas tariffs

In January 2025, the Utility Regulator commenced a review of Firmus Energy (Ten Towns area) and SSE Airtricity Gas Supply’s (Greater Belfast and Western areas) regulated gas tariffs for domestic and small business customers. 

Commenting on the conclusion of the tariff reviews, Colin Broomfield, Director of Markets at the Utility Regulator said:

“In January 2025, we began a formal review of the regulated tariffs for Firmus Energy (Ten Towns area) and SSE Airtricity Gas Supply (Greater Belfast and Western areas). Following our analysis, we have determined that Firmus Energy’s regulated tariff will decrease by 11.84%, and there will be no change to SSE Airtricity Gas Supply’s regulated tariff. 

“Firmus Energy’s decrease of 11.84%, or £136 per year, will come into effect from 1 April 2025. 

“Following the conclusion of our review of the gas tariffs, the combined regulated gas and electricity tariffs in Northern Ireland will be lower than the price cap in Great Britain and the Republic of Ireland, from 1 April 2025. Power NI’s regulated tariff was reviewed in October 2024 and a 4% increase came into effect on 1 December 2024.

Note: Figures above are based on the annual bill of a domestic customer consuming 12,000 kWh of gas and 3,200 kWh of electricity on the standard tariff. 

“When the Firmus Energy tariff was set in April 2024, this included an allowance** to recover higher than forecast wholesale gas costs from the previous tariff period. The company has now recovered those costs. This is the main reason for the 11.84% decrease to Firmus Energy’s new tariff, coming into effect on 1 April 2025.  

“It is important to note that the wholesale energy market continues to be volatile. We will continue to monitor the regulated suppliers’ tariffs to ensure that regulated tariffs reflect the actual cost of providing gas and electricity to consumers. 

“We do recognise that many households and businesses are still struggling with their energy costs. If you are worried about paying for your electricity or gas, we would encourage you to contact your supplier in the first instance, to make them aware of your circumstances, and discuss the options available. In addition, there are a number of agencies who can provide free and independent advice to households, including Advice NI, Christians Against Poverty, the Consumer Council for Northern Ireland and Money and Pensions Service’s MoneyHelper.”

This tariff announcement marks the conclusion of reviews undertaken by the Utility Regulator, Firmus Energy and SSE Airtricity Gas Supply, in consultation with the Department for the Economy and the Consumer Council for Northern Ireland. 

A briefing paper on Firmus Energy's tariff review has been published. 

Further information: 

• *The GB Price Cap figure of £1,849, applicable from 1 April 2025 uses consumption rates of 2,700kWh for electricity and 11,500kWh for gas, based on an annual Direct Debit customer.

• **Regulated gas tariffs in Northern Ireland include a ‘K-Factor’ to address under or over recoveries within the tariff period. Wholesale gas costs make up a large component of the final maximum average price and because these costs can be volatile, there will be a difference between the forecast costs when the maximum average price was set and the actual out turn. Should these costs out turn lower than forecast (referred to as ‘over-recovery’), the costs will subsequently be refunded to customers in the following tariff period. Alternatively, should these costs out turn higher than forecast (referred to as ‘under-recovery’), the regulated supplier will be able to recharge the under recovered difference to customers in the following tariff period. This ensures that customers only pay for the actual cost of gas.

• The bill comparison with RoI uses an exchange rate for comparison of 0.83 and VAT rate of 9%. 

• The gas tariff reviews include small business customers using less than 2,500 therms per annum.

• Media contact - Adele Boyle 07787 279584.