‘EXCEPTIONAL INCREASES IN INTERNATIONAL FUEL PRICES DIRECTLY RESPONSIBLE FOR RISING ELECTRICITY AND GAS BILLS’ SAYS REGULATOR
The Utility Regulator today said that ‘exceptional increases in international fuel prices were directly responsible for rising electricity and gas bills’.
Commenting on the announcement by NIE Energy of a 33% increase in electricity bills and announcement by Phoenix Supply Ltd of 19% hike in gas bills, Utility Regulator Chief Executive, Iain Osborne, said:
_“‘ Fuel prices are the single largest component of energy prices. Winter wholesale gas prices for instance are more than double that of a year ago, and two-thirds of our electricity is generated from gas. This exceptional situation has already led to major price increases by energy companies in many other European countries, including other parts of the UK and the Republic of Ireland”._ The Regulator confirmed that it had scrutinised the proposals from both energy companies for price rises before approving the increases.
Mr Osborne added:
_“We don’t approve proposals for price rises without extensive scrutiny. We spend a considerable amount of time and apply our expertise to make sure that the level of the increase is justified. We regret having to approve major price rises and are conscious of the impact that this will have on household budgets in Northern Ireland_
_“ We have also responded to long-standing business calls for a fairer allocation of the Public Service Obligation costs. These have been allocated equally across purchases by all customer groups._
_“ We have worked hard to try to minimise the burden of the increase on low income consumers in particular. Specifically, we have directed NIE Energy to take specific steps to prevent price increases disproportionately impacting on Economy 7 users, who tend to be on low incomes._
_“More widely, the Utility Regulator stands ready to make a contribution to any government-wide initiative to address fuel poverty._”
Mr Osborne concluded:
_“ We exist to protect customers and we know that these are very difficult times for consumers In Northern Ireland. Setting prices is a two way street. We will continue to work with the Consumer Council for Northern Ireland to scrutinise any proposed price changes, and we will also make sure, should costs come down, that customers will see the benefits as quickly as possible in reductions in their bills”._
Notes to Editors
1. The Northern Ireland Authority for Utility Regulation (the Utility Regulator) is the non-Ministerial Government Department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.
2. Further information that (1) outlines the Utility Regulator’s view on the price increase proposals by NIE Energy and Phoenix Supply Ltd, and (2) Question and Answers on both price increases can be viewed or downloaded using the links below:
Utility Regulator View on NIE Energy Increase
Questions & Answers on Electricity Price Increase
Utility Regulator View on Phoenix Supply increase
Questions & Answers on Gas increase
3. The Chief Executive of the Utility Regulator, Iain Osborne, is available for interview from 8 a.m. on 10th September. He will also be addressing a session of the Enterprise, Trade and Investment Committee on 10.30 a.m. at Stormont (Room 21) and will be available up to 12.30 p.m.. Should you wish to speak to Mr Osborne or plan an interview you should contact Greg Irwin at the Utility Regulator (0779 4335860) or Chris Brown (Weber Shandwick - 07770 886911) to arrange