Cost of Living: energy cap announced for Northern Ireland

energy cap announced for NI
Author: Nigel GouldPublished 21st Sep 2022

Households and businesses across Northern Ireland are to receive the same level of support with their energy bills as the rest of the UK, it was announced today (Wednesday)

it means homes, businesses, charities and public sector organisations such as schools and hospitals are set to benefit from an energy price cap.

Churches and community halls will also get help.

Overall, the plan will see energy bills for businesses cut by around half their expected level this winter.

Business Secretary Jacob Rees-Mogg said the Government's energy support scheme would offer households in Northern Ireland the same level of gas and electricity bill support as an equivalent scheme in Great Britain.

The announcement follows the launch of the Energy Price Guarantee for households in the rest of the UK, under which a typical household will pay on average £2,500 a year on their energy bill for the next two years from October 1.

The scheme limits the price suppliers can charge customers for units of gas and electricity.

Mr Rees-Mogg said the Northern Ireland Energy Price Guarantee will offer households in Northern Ireland the same level of gas and electricity bill support as the equivalent scheme in Great Britain.

The Government said the scheme will work through electricity and gas bills.

Energy suppliers will reduce bills by a unit price reduction of up to 17p/kWh for electricity and 4.2p/kWh for gas.

The Government said there is no need for householders to take any action to receive this support.

It said the scheme will take effect from November, but the Government said it will ensure households receive support so they will see the same benefit overall as those households in Great Britain by backdating support for October bills through bills from November.

Households in Northern Ireland will also receive a £400 discount on bills through the Northern Ireland Energy Bills Support Scheme.

However, Colin Neill, Chief Executive of Hospitality Ulster said "urgent clarity" was needed on how the business relief scheme will operate in the region.

He added: "It is simply unacceptable that Northern Ireland businesses do not have any detail on how support will be provided.

"We need urgent clarity on how these measures will be carried forward.

"Thousands of businesses are on the brink, with many concerned how they will get through the winter.

"The cost-of-energy crisis is a real threat to people's jobs, livelihoods and businesses.

"In what should be the beginning of our busiest period, hospitality is instead looking at how to keep the lights on.

"Further support measures including slashing the VAT rate and a business rates holiday are also urgently required to tackle the cost-of-doing-business crisis.

"We have no choice but to wait for much-needed clarity which will hopefully provide some short-term relief to the hospitality sector in the coming months."

Earlier Prime Minister Liz Truss said:

“I understand the huge pressure businesses, charities and public sector organisations are facing with their energy bills, which is why we are taking immediate action to support them over the winter and protect jobs and livelihoods.

“As we are doing for consumers, our new scheme will keep their energy bills down from October, providing certainty and peace of mind.

“At the same time, we are boosting Britain’s homegrown energy supply so we fix the root cause of the issues we are facing and ensure greater energy security for us all.”