The Utility Regulator today publishes its latest Annual Transparency Report (ATR) for 2016 (January to December).
We publish transparency reports on an annual and quarterly basis. The reports provide a range of information about the electricity and gas energy supply markets in Northern Ireland. The ATR presents data collected by the UR as part of the Retail Energy Market Monitoring (REMM) framework. REMM requires network companies and suppliers to submit data on a range of indicators to enhance UR transparency around market behaviours and regulatory compliance. We use the information outlined in the report to review the progress and impact of supply competition; build knowledge for regulatory decisions; comply with EU Third Package mandatory requirements on market monitoring; allow other interested stakeholders to understand more readily the activity within our energy markets; and to help promote the interests of consumers.
EU pricing comparative data within the report is sourced from Eurostat, and can be influenced by exchange rate movements as well as underlying prices and costs.
We have been collecting REMM data under the new framework since Q3 2015 and this is the first year where the new REMM data has been used for the ATR. In future years we envisage that the ATR will be expanded to publish further information on the indicators that we monitor within the REMM framework.
As per the QTRs the electricity pricing data is sourced from Eurostat and individual supplier’s submissions. As is evident in section 3.4 of this report, Semester 2 2016 saw a significant change in euro exchange rates from the previous semester and the resultant deterioration of the pound, together with cost/price movements, impacted the comparison of the NI tariffs with the rest of the EU:
NI domestic electricity prices were amongst the lowest in Europe at 13.9 p/kWh and considerably lower than the Republic of Ireland (20.1 p/kWh), the EU median (17.3 p/kWh) and the UK (15.7 p/kWh).
NI I&C electricity prices for the Very Small connections (which represent 66% of I&C connections) were one of the lowest in Europe. The NI price at 11.8 p/kWh was lower than the UK (12.6 p/kWh), the EU median (15.7 p/kWh) and Republic of Ireland (16.9 p/kWh).
In the gas markets the regulated tariffs for SSE Airtricity and firmus energy (the incumbent price controlled gas suppliers) decreased during 2016. The tariff reviews indicated the following:
10.2% decrease to the SSE Airtricity regulated tariff in the Greater Belfast area, taking effect from 1st April 2016.
7.7% decrease to the firmus energy regulated tariff in the Ten Towns area, taking effect from 1st April 2016.
Market activity in the electricity domestic and I&C sectors continues to illustrate a change in the market dynamics. Based on total connections Power NI (the incumbent price controlled electricity supplier) retain their dominant position with 61.5% of the domestic market. Electric Ireland and Click Energy made considerable domestic gains during 2016 with a market share of 30,413 (3.5%) and 14,826 (1.7%) connections respectively as at the end of the year.
Any comments or queries in relation to this paper should be made to:
Seán MurphyUtility RegulatorQueens House14 Queen StreetBelfast BT1 6EDDirect Tel: +44 (0) 28 9031 6332
Copies of all documents can be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.