26/03/2004

Minister steps into Gas hike row

Enterprise Minister Ian Pearson has expressed deep concern over proposed gas price increases in Northern Ireland.

The Minister's statement follows last week's announcement by Phoenix Gas to raise its prices in Northern Ireland by around 20%.

A cross party delegation, led by former Minister Sir Reg Empey, today met with the Minister and management at Phoenix to discuss the situation. Mr Pearson said he had asked the energy regulator, Ofreg to complete an urgent investigation and report back to him by the end of March.

“I am deeply concerned about the proposed price increase recently announced by Phoenix Natural Gas," the Minister said. "The scale and timing of the increase is particularly disappointing. It represents a significant burden for gas consumers to bear, especially for those on low incomes. I am also concerned about the potential implications for the development of the gas industry in Northern Ireland.

“While I recognise that the proposed increase derives from the commercial contract between Phoenix and its wholesale gas supplier, consumers are entitled to have more information and assurances about the justification for its scale and timing."

Phoenix Gas has blamed its supplier, British Gas Trading (BGT), for the increase, which will see customers paying an extra £1.36 a week on average.

However, East Belfast MLA, Sir Reg Empey said the company had to take some responsibility for the increase.

"While I fully accept that Phoenix Gas are not solely to blame because their supplier has put up their wholesale price, the situation remains urgent and we require action to be taken," he added.

(MB)

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