NI Energy Prices Set To Rise

Northern Ireland households are set to be hit by further rises in their energy bills, with electricity prices set to rise by a third and gas prices to rise by nearly 20% from the start of next month.

The increases come just two months after electricity prices rose by 14%, while gas prices rose by 28% in May.

The latest increases mean that the average annual household electricity bill will now reach £585, while the average annual gas bill will rise to £689.

The cost of Economy 7 heating, which is used in around 4% of homes in Northern Ireland, will also increase by a third.

Stephen McCully, NIE Energy Managing Director, blamed the rises on the costs of wholesale fuel, which had increased by over 100% on average in the last year.

He said: "NIE Energy regrets having to pass such a sizeable increase on to customers, but the sustained very high power purchase costs have left us with no alternative.

"I would like to assure our customers that if NIE Energy is able to secure the purchase of lower cost power during 2009, this will be passed on to customers in the autumn 2009 price review.

"This is a tough economic climate and we are concerned about the impact of this increase on our customers, particularly those on lower incomes. If you are worried about paying for electricity, please contact us. There is help available for those who need it most."

David Strahan, General Manager of Phoenix Supply, said: "Phoenix, like all energy companies across the UK, is experiencing record high wholesale gas costs. A price increase of any size is not welcome news, but in the face of such large increases in wholesale gas costs, we have no alternative but to review prices.

"When the price Phoenix paid in wholesale markets reduced in the past, we were able to pass these savings on to our customers. If, as we hope, world-wide energy prices fall, Phoenix will, once again, reflect any savings in the price our customers pay."

However, Eleanor Gill, Chief Executive of the Consumer Council, said that the price rises were "truly shocking" and warned that people would "struggle to cope". She said: "The Consumer Council accepts that our electricity and gas bills have to go up to cover the rising costs of wholesale energy. Having considered all the information provided to us, we accept that Phoenix's level of increase bears scrutiny and is broadly in line with the rest of the UK.

"However NIE Energy's scale of increase is not and it needs urgent and further explanation - in just 10 months their rate of increase has almost doubled compared to the rest of the UK even though we are told that global energy prices are behind these rises. The Consumer Council cannot accept an increase of this scale until this fundamental question is fully answered."

(KMcA/JM)