Customers of Power NI and Firmus in Northern Ireland are set to experience an increase in their energy bills starting July 1. Power NI will raise its electricity unit price by 6.2% across Northern Ireland, a change the company estimates will add approximately £5 per month to the average household's bill.
Simultaneously, Firmus, a supplier of natural gas, will implement a 15.65% tariff increase for its Ten Towns customers. This adjustment is projected to increase the average household's gas bill by about £2.47 per week, equating to £10.70 per month.
Both energy providers have stated that the increases are due to higher global energy and gas prices. William Steele, Director of Customer Solutions at Power NI, said this tariff increase was "not a decision we've taken lightly." He explained that the company had worked hard to maintain current prices for an extended period. However, sustained increases in global gas costs, combined with higher network and market-related charges, have rendered the adjustment unavoidable. Steele also noted that Power NI had delayed this change while striving to keep its tariffs competitive locally and below the average rates observed in Great Britain and the Republic of Ireland.
David Smith, director at Firmus, announced the latest tariff change, stating, "Unfortunately, we continue to experience elevated wholesale prices while the conflict in the Middle East remains unresolved." Smith added that over the past year, Firmus had reduced its tariffs on three separate occasions, bringing them down by over 27% and saving customers around £300 on average per annum. He also said that while the increase is "unwelcome," it means that customers' bills will "now be roughly the same as this time last year and still significantly below where they had been in previous years."
Leigh Greer, head of security of supply and markets regulation at the Utility Regulator, said: "We understand this increase in energy costs is not welcome news for consumers." Greer explained, "Unfortunately, the impact of continued and sustained rises in the wholesale cost of energy, caused by the conflict in the Middle East, has resulted in these increases." He also noted that the conflict has impacted energy prices globally, affecting home heating oil, petrol, and diesel prices.
The Consumer Council for Northern Ireland (CCNI) has commented on the situation, with Raymond Gormley saying the gas price increase was "inevitable" due to the conflict in the Middle East. Gormley warned that if the conflict continues, customers could see their bills rise even more. "Another regulated gas tariff review is scheduled for October and if the conflict is not resolved very soon, we could see further gas price increases in the autumn," Gormley said.
The CCNI has encouraged consumers affected by these energy price changes to review their payment methods and explore options for reducing costs. This includes considering switching payment plans, adjusting billing methods, or changing energy suppliers.
