While soaring inflationary pressures offer little cheer to hard hit households, Northern Ireland consumers can take some comfort from the fact annual energy bills are set to be more than £1,000 below those in Great Britain (GB).
Commenting following news of SSE Airtricity’s 28.3% hike in gas prices for domestic and small business customers in Greater Belfast and the Western gas distribution areas, the Northern Ireland Utility Regulator said the combined gas and electricity bill for those in the region will be £2,393 from October.
That compares to the £3,549 a year in GB following Ofgem’s recent announcement of an 80% increase in the price cap there, one which doesn’t apply to Northern Ireland.
John French, Chief Executive of the Utility Regulator, said the unprecedented rally in wholesale gas prices is to blame.
“I fully recognise that this differential between Great Britain and Northern Ireland is cold-comfort to those who are struggling here,” he said. “Unfortunately, the wholesale gas market continues to surge, and is producing prices sixteen times higher than normal historic rates.
“We will continue to do everything in our control, to support consumers at this very difficult time. We continue to work with HM Treasury, UK Government, and Northern Ireland Government to ensure the £400 energy bill support scheme is paid out as soon as possible.”
The latter comments follow the announcement by the Chancellor today that the UK government will deliver the £400 Energy Bill Support Scheme in Northern Ireland. A question mark had hung around the distribution of the UK-wide supplement in the province given the fact there is no functioning Executive at Stormont.
Economy minister Gordon Lyons said “he believed the payment will be delivered this November” on Twitter but finance minister Conor Murphy said there was no certainty on the timing.
“Unfortunately, today’s meeting has provided no guarantee on when citizens here will receive the equivalent support,” he said. “While the British Government has committed to delivering support as quickly as possible they have failed to confirm whether households will receive their payment at the same time as those in England, Scotland and Wales.
“It is deeply regrettable that payments to citizens in the North may be delayed due to the absence of an Executive.”
Meanwhile, the Utility Regulatory said it was looking at other ways to ease the burden of high energy prices. Next week it is convening a roundtable of government departments, energy suppliers and the Consumer Council for Northern Ireland to look at practical steps that can be taken to support consumers this winter.
“As a regulator we are using everything in our regulatory toolbox to support consumers,” John French said. “I continue to remind energy suppliers of the requirement that they adopt a sympathetic approach to customers’ ability to pay, and of their obligations to avoid customer disconnections and consider other approaches to protecting people in debt.
“I have heard the concerns from consumers and have also written to suppliers regarding their obligations to customers around direct debit billing arrangements.
Meanwhile, the group representing independent retailers in Northern Ireland said not enough is being done to help small businesses in the current energy crisis.
“We are no longer just experiencing a cost-of-living crisis, it is also a cost of doing business crisis which threatens jobs and businesses across every sector of our economy," Glyn Roberts, Chief Executive of Retail NI, said. "Businesses are facing a perfect storm of cost increases including Business Rates, Energy, National Insurance, Inflation and rising Interest rates”
“We repeat our call for the immediate restoration of the Business Rates Holiday until next April to help ease the burden on businesses. While it is no silver bullet, it is disgraceful not to have a functioning Executive in place during this escalating crisis”
“Make no mistake this is about saving jobs and businesses over the next months. We need immediate action and leadership from our political parties”
