More energy costs misery on the way for Northern Ireland customers
There has been more bad news for energy consumers with news that Northern Ireland's largest energy supplier, Power NI, is to increase prices by 27.5% from July 1st.
That will mean the average local home will see their bills have an extra £204 per year added. Meanwhile customers with a prepaid meter will have to fork out an extra £199 per year.
Power NI said the change is 'entirely due to the sustained unparalleled price increases in the wholesale energy markets, which have been impacted by ongoing global issues.'
The change in tariff has already been approved by the Utility Regulator and applies to domestic customers only.
Director of Consumer Solutions at Power NI, William Steele, said they had no choice but to make the increase in response to global events.
"We work hard to keep our prices as low as possible and have absorbed costs for as long as we can. Regrettably geo-political factors outside of our control, have resulted in prolonged high costs in the international wholesale energy markets.
"Like other suppliers, we have no choice but to pay these increased costs, which feed into the price of wholesale electricity and have a knock-on effect on tariffs.
"In these challenging times, and with such a volatile market, we held off making the change for as long as possible, with this price change not coming into effect until July.
"As soon as we see an opportunity to reduce prices, we will do so without delay".
Raymond Gormley, Head of Energy Policy at the Consumer Council said: “This is Power NI’s second tariff increase this year and its biggest since October 2008. It will impact more than half Northern Ireland’s households, many of whom are already upset, worried, and angry about energy price increases.
"While consumers get that price increases are happening due to global reasons, that knowledge does not help when it comes to paying their bills.
“With 53% of prepayment electricity consumers telling us they have had to cut back on food purchases to be able to afford a top up, many households are going to need significant financial support in the coming winter."
He outlined how some of that support should work.
“At a minimum, this support should include re-running the Department for Communities Energy Payment Support Scheme for a wider group of people and re-establishing the Emergency Fuel Payment Scheme that the Consumer Council worked hard to get off the ground in partnership with the Department, energy companies and Bryson Charitable Group.
“We urge anyone who is struggling to pay their energy bills or to top-up their meter, to contact their supplier directly for help and support. We also encourage consumers to think about ways they can reduce their energy costs through energy efficiency and, importantly, if possible, trying to save over the summer months to cover energy costs during winter 2022-23.
“In the longer term, this situation shows the importance of the Department for the Economy’s Energy Strategy Action Plan, that aims to tackle affordability and move Northern Ireland away from its dependence on fossil fuels.”