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02/06/2023
Energy Firms Announce Price Reductions
Following a review of Northern Ireland's regulated energy prices, Power NI will lower its household electricity rate by 7.1%, while SSE Airtricity Gas Supply will lower its domestic and small business rate by 12.2%.
However, the regulated tariff decreases are being offset by the reduction in EPG which will drop from approximately £454 per year in discount for the average household, to £0 from 1 July 2023. The result of this change will mean that domestic energy bills in Northern Ireland will therefore increase (5.1% for Power NI and 10.6% for SSE gas customers), as the underlying reduction in energy prices is not as great as the support previously received by the UK Government.
The reductions will take effect on July 1st, 2023.
John French, Chief Executive of the Utility Regulator said: "In April 2023, the Utility Regulator commenced a review process of the regulated gas and electricity tariffs in Northern Ireland. These tariff reviews form part of our regular scrutiny to make sure that consumer bills reflect the actual cost of providing gas and electricity to homes across Northern Ireland. Following our analysis of both company’s costs, we agree that Power NI’s electricity tariff will decrease by 7.1%, and SSE Airtricity Gas Supply’s tariff will reduce by 12.2%.
"The reduction to the underlying regulated tariff is a direct result of the recent falls in forward wholesale energy prices, after the huge increases that were seen following Russia's invasion of Ukraine in February 2022. Unfortunately though, these tariff decreases coincides with the removal of the financial support provided through the UK Government’s Energy Price Guarantee (EPG) scheme.
"The EPG scheme was brought in by the UK Government in November 2022 to help Northern Ireland households with high energy. As the cost of wholesale energy has been steadily reducing, the UK Government have decided to reduce the value of the support scheme to zero from 1 July 2023.
"Although the underlying wholesale price of energy has significantly reduced over the last few months, it still remains twice the price of historic norms. For example, the forward gas price is currently around £1.20 per therm, whereas before the Russian invasion, it was around 50 to 60 pence per therm."
However, the regulated tariff decreases are being offset by the reduction in EPG which will drop from approximately £454 per year in discount for the average household, to £0 from 1 July 2023. The result of this change will mean that domestic energy bills in Northern Ireland will therefore increase (5.1% for Power NI and 10.6% for SSE gas customers), as the underlying reduction in energy prices is not as great as the support previously received by the UK Government.
The reductions will take effect on July 1st, 2023.
John French, Chief Executive of the Utility Regulator said: "In April 2023, the Utility Regulator commenced a review process of the regulated gas and electricity tariffs in Northern Ireland. These tariff reviews form part of our regular scrutiny to make sure that consumer bills reflect the actual cost of providing gas and electricity to homes across Northern Ireland. Following our analysis of both company’s costs, we agree that Power NI’s electricity tariff will decrease by 7.1%, and SSE Airtricity Gas Supply’s tariff will reduce by 12.2%.
"The reduction to the underlying regulated tariff is a direct result of the recent falls in forward wholesale energy prices, after the huge increases that were seen following Russia's invasion of Ukraine in February 2022. Unfortunately though, these tariff decreases coincides with the removal of the financial support provided through the UK Government’s Energy Price Guarantee (EPG) scheme.
"The EPG scheme was brought in by the UK Government in November 2022 to help Northern Ireland households with high energy. As the cost of wholesale energy has been steadily reducing, the UK Government have decided to reduce the value of the support scheme to zero from 1 July 2023.
"Although the underlying wholesale price of energy has significantly reduced over the last few months, it still remains twice the price of historic norms. For example, the forward gas price is currently around £1.20 per therm, whereas before the Russian invasion, it was around 50 to 60 pence per therm."
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Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
