The Utility Regulator has today issued its final determination to Phoenix Natural Gas Ltd (“Phoenix”) in relation to the allowed revenues for its gas distribution business in the Greater Belfast area. The determination will result in an average domestic price for using the Belfast distribution network of 35.26p in 2008. This compares to the current price of 40p. It should be noted that this does not automatically imply that domestic retail prices will reduce. Under its licence, Phoenix now has 28 days to decide whether to accept the determination. If accepted, the determination will apply until the end of 2011.
The Utility Regulator is currently working on the supply price control with Phoenix and the Consumer Council and hopes to issue its determination in the coming weeks. The supply price control will set the total selling price for domestic customers. This will be made up of wholesale gas costs, the postalised Northern Ireland transmission charge, the determination for distribution revenue above and finally allowed supply business operating costs and margin.
In the meantime, end prices to domestic gas consumers will remain at the level set on 31st March 2007. A review of domestic prices is expected to be completed in December with any required change implemented in 2008.
Notes for Editors
The Utility Regulator is the informal name for the Northern Ireland Authority for Utility Regulation (NIAUR) the regulator of the Electricity, Gas and Water and Sewerage industries in Northern Ireland. NIAUR’s powers are derived from the Electricity (Northern Ireland) Order 1992, the Gas (Northern Ireland) Order 1996 as amended by the Energy (Northern Ireland) Order 2003 and the Water and Sewerage Services (Northern Ireland) Order 2006.
For further information contact:-
Conall McDevitt, Weber Shandwick Tel: 028 90764911, 07770 886933