HOUSEHOLDS in Northern Ireland are being met with mixed news from their energy providers, as electricity costs are set to increase, but gas prices will fall.
Following a review by the Utility Regulator, energy companies have announced adjustments to their prices, impacting hundreds of thousands of customers.
Power NI, Northern Ireland’s largest electricity supplier, has confirmed that its domestic and small business electricity tariffs will increase by 4% starting from October 1st.
This is the second hike within the past year, and it will result in an average annual bill increase of approximately £40 for customers using credit meters.
William Steele, Director at Power NI, described the increase as “unavoidable”, citing higher regulated market and network-related charges beyond the company’s control.
“This change is necessary to ensure that we continue to deliver electricity in a financially sustainable way,” Steele said.
“We have worked to delay this increase for as long as possible.”
According to the Consumer Council, the increase will bring the average household electricity bill to around £1,029 per year, nearly double the typical cost just five years ago, before global energy markets were disrupted by Russia’s invasion of Ukraine.
In contrast to rising electricity costs, many gas users in Northern Ireland will see a welcome reduction in their bills starting in October.
SSE Airtricity has announced an 8.47% cut in its gas tariff for domestic and small business customers in the Greater Belfast and Western regions.
This translates to an average annual saving of about £94 per household.
Stephen Gallagher, Managing Director of SSE Airtricity, expressed hope that the reduction would offer some relief to customers.
“We understand that energy costs remain a top concern, and this decrease reflects recent improvements in wholesale gas prices,” he said.
Firmus Energy is also lowering its gas prices, announcing a 7.8% reduction for customers in the Ten Towns area, including Newry, Ballymena, Armagh and Coleraine.
This move is expected to save the average person nearly £80 each year.
Raymond Gormley, Head of Energy Policy at the Consumer Council, emphasised the importance of communication between consumers and suppliers.
“We urge anyone struggling to manage their energy bills or top-ups to contact their provider directly,” he said.
“Most suppliers are willing to offer support, and there are mechanisms in place to help protect vulnerable consumers.”
Also, Electric Ireland has announced it is leaving the domestic electricity market in Northern Ireland.
As part of a commercial agreement, approximately 26,000 of its customers will be automatically transferred to Power NI starting this week.
This is expected to help Power NI’s position in the market, which already includes more than half a million customers.