NI Power Costs Falling

There's to be a 'power cut' for NI consumers with the cost of electricity going down again.

However, while falling faster than in the rest of the UK, the Consumer Council said the reduction in electricity prices of an average 50p a week was "negligible for those currently in fuel poverty".

While welcoming both gas and electricity price reductions, the organisation's Chief Executive Antoinette McKeown said: "The Consumer Council believes the system by which electricity is purchased and prices are determined is transparent but flawed and costs consumers more money."

The criticism comes as Northern Ireland Electricity revealed it was dropping prices by 5%, on top of a 10.8% decrease at the start of the year.

NIE Energy said their latest price reduction would shave around £26 of the average household bill.

Householders would be paying an average £64 less than their counterparts south of the border and less than those in many European countries including Denmark, Germany, Italy, Belgium and the Netherlands.

The move has been praised by the official Utility Regulator Iain Osborne: "Our ongoing scrutiny of tariffs means that consumers feel the benefits of cost reductions in their bills as soon as possible."

"During 2009, this has meant that electricity bills in Northern Ireland have fallen more quickly that other parts of the UK or the Republic of Ireland," he commented, adding that "falling wholesale costs have been the primary reason for both electricity price decreases during 2009".

Gas prices are also on the way down with supplier firmus energy announcing it was reducing the domestic gas tariff by 17.7% - but that's only in the ten towns across Northern Ireland that it supplies.

Mark Prentice, General Manager of firmus, said their gas price reduction would mean a saving of £96 for the average domestic user.

He said they were delighted to announce such a significant reduction as the winter months approached.

"Natural gas has historically been cheaper than oil and wholesale gas prices have decreased significantly over the last six months.

"This is in stark contrast to crude oil prices, which have increased by a massive 83% over the six month period from February to August 2009.

"We have shown over the last four years that firmus has consistently delivered value to our customers and this has been backed up by our unique price promise against home heating oil.

"Once again we have delivered on our price promises and natural gas users can be fully confident they have made the right decision to choose natural gas from firmus, both now and over the long term," he said.

Major gas firm, Phoenix Gas, which supplies the bulk of customers has just also said it was reducing its tariff by 19%, also from October 1 - on top of a 22.1% drop at the start of the year.

See: Cost Of Power Under Review

(BMcC/KMcA)