NIE cuts tariffs by 3%

Northern Ireland Electricity (NIE) has today announced a 3% reduction in electricity tariffs.

Around 680,000 NIE domestic customers will see their bills reduced by around £11, the equivalent of a price cut of over 6% in real terms, once inflation is taken into account.

The price is now on a par with the average in Great Britain and the continent and around 17% below those in the South.

NIE spokesperson, Robin Greer said: “The new tariffs reflect lower wholesale gas prices offset by £40 million towards the cost of emissions cleaning equipment at the AES-owned Kilroot power station. It is likely that consumers will be required to meet further costs associated with this work.”

The revised tariffs will remain valid until at least November 2007 when the Northern Ireland domestic market will open to competition, in conjunction with the introduction of the all-island wholesale electricity market.

Pheonix Natural gas is also expected to shortly announce a cut in prices for their customers.

Ofreg regulator has approved the moves to reduce prices.

Chief Executive Iain Osborne welcomed the cuts, saying: “Any downward movement on tariffs is a welcome development and this reduction should be particularly good news to households facing bill increases from other sources this year.”

(JM/SP)