The Utility Regulator today welcomed the announcements by firmus energy regarding the reductions in their gas tariffs in the Ten Towns and Greater Belfast areas.
Utility Regulator Chief Executive, Jenny Pyper said:
“Today’s announcement by firmus energy to reduce regulated gas prices for their Ten Towns customers by 5% is welcome news. As we enter the winter months, this reduction will benefit households and businesses as they see this reduction reflected in their gas bills from 1 October 2015.
“The main reason for the decrease is falling wholesale gas costs. As we regulate firmus energy’s prices in the Ten Towns, our tariff review involves a thorough analysis of all their cost elements. Ten Towns customers of firmus energy can be confident that, due to our regulation, their bills reflect the actual costs of supplying gas to their homes and businesses.
“Whilst we don’t price regulate firmus energy’s tariff in the Greater Belfast area, their 10% reduction is further good news for consumers and demonstrates the responsiveness of the market. These reductions mean that consumers here are continuing to benefit from amongst the lowest gas standard tariffs in the UK.”
This announcement marks the conclusion of the Ten Towns tariff review which is undertaken by the Utility Regulator and firmus energy, in consultation with the Department of Enterprise, Trade and Investment and the Consumer Council for Northern Ireland. We continue to monitor wholesale costs in relation to firmus energy’s regulated prices.
ENDS
For further information, please contact Adele Boyle on 028 9031 6664 or 07787 279584.
Notes to editor
• 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.
• The briefing paper relating to the firmus energy announcement for the Ten Towns market is available within gas publications.
• The Ten Towns and Greater Belfast area are two separate markets, with different distribution network operators.
• This is the second regulated tariff review for the Ten Towns area. As firmus energy built the distribution network in the Ten Towns area, their licence provided a period of exclusivity for supplying gas to customers within this area. This period ended on 1 April 2015, hence the regulated tariff review and other suppliers can now enter the market.
• This reduction of 5% is less than the recent SSE Airtricity regulated tariff reduction of 10% for two reasons: different network cost movements in the two gas areas; and Airtricity returning an over recovery from the previous tariff period to customers in the Belfast area.
• The Ten Towns are Derry/Londonderry, Limavady, Coleraine (including Portstewart and Bushmills), Ballymoney, Ballymena (Broughshane), Antrim (including Ballyclare and Templepatrick), Craigavon (including Portadown and Lurgan), Banbridge, Newry (Warrenpoint) and Armagh (Tandragee)
• The Greater Belfast area covers: south, west, east and north Belfast; Carrickfergus; Newtownabbey; Duncrue and Harbour; Lisburn; Carryduff; Castlereagh; Newtownards; Larne; and North Down.