Local domestic bills to soar due to global gas prices
SSE Airtricity Gas Supply has announced a 39% increase to its regulated tariff for domestic and small business customers in the Greater Belfast and Western distribution areas.
This will mean that the average domestic gas bill will increase by £244, to £870 per year from 1 April this year.
Commenting on the announcement, John French, Chief Executive of the Utility Regulator said: “In January 2021, SSE Airtricity submitted an application to the Utility Regulator for a review of their regulated gas tariff. We have now completed our analysis of their application and undertaken a consultation with both the Department for the Economy and the Consumer Council for Northern Ireland on the proposals.
"This review process has concluded and SSE Airtricity Gas Supply’s regulated tariff will increase by 39% on 1 April.
“The cost of wholesale gas has increased significantly over the last seven months largely due to Russia reducing the supply of natural gas into Europe. However, today’s announcement does not take into account the further upward wholesale price pressures we have seen since Russia’s invasion of Ukraine. We will therefore need to keep this tariff under review, as this unfortunate conflict has significantly exacerbated the volatility and price movements within the market. Regrettably, it is highly likely that a further increase to tariffs will be needed at some point.
“I would encourage anyone worried about paying for their energy bill to contact their supplier as soon as possible. There are also a number of agencies who can provide free and independent advice, including Advice NI, Money and Pensions Service and Christians Against Poverty.
“Throughout the past year, we have been working with government, the Consumer Council and energy suppliers to try and mitigate the effects of these energy price increases. We established a working group with the Department for the Economy, Department for Communities and the Consumer Council for Northern Ireland to actively explore what practical measures can be brought forward to alleviate the burden of these higher prices on consumers. I am pleased that the Northern Ireland Executive has provided significant funding to support local energy consumers.
“I have also written to all energy suppliers and reminded them of their regulatory obligations to avoid customer disconnections and consider other approaches to protecting customers in debt.”
Raymond Gormley, Head of Energy Policy at the Consumer Council, said: “SSE Airtricity has been absorbing higher commodity gas prices for a number of months and has no option now but to pass increased wholesale costs onto its customers.
"However, large price increases like the announcement today, makes budgeting extremely difficult for consumers. This increase follows price rises in the Ten Towns gas network last month, increased grocery costs, increased home heating oil prices and increased fuel costs. Therefore, many household purse strings are being stretched to the absolute limit.
“The invasion of Ukraine will increase the pressure on gas and oil supply, which in turn will push up costs. As a result, energy prices could be volatile for a number of weeks and will remain high for the foreseeable future.
"This situation shows the importance of the Department for the Economy’s Energy Strategy that aims to tackle affordability in the long term and move us away from our dependence on fossil fuels.
“We encourage anyone who is struggling to pay their energy bills or to top-up their meter to contact their supplier directly for help and information. We also encourage consumers to think about ways they can reduce their energy costs through energy efficiency or changing billing method.”
Mr Gormley continued: “We welcome the support SSE Airtricity has in place for vulnerable customers. However, it is clear that all energy industry stakeholders including Government policy makers, the Utility Regulator, companies, charities and the Consumer Council must continue to work together to develop sustainable solutions to help support those in need as the problem of high fuel prices will be with us for some time.”