Energy bills in NI to rise as government discount ends
Picture credit, Getty Images
The cessation of assistance will result in an increase of several hundreds of pounds in certain household expenses.
BBC News Northern Ireland's correspondent specialized in business matters.
Starting this Saturday, the majority of households in Northern Ireland will face a substantial rise in their energy bills, amounting to hundreds of pounds annually, as the government's assistance program reaches its completion.
The Energy Price Assurance (EPA) Program was implemented in November 2022, offering a reduced rate for the consumption of electricity and natural gas.
However, starting from Saturday, the discount will cease to be applicable as it has been steadily diminished since January.
Deirdre McCausland, a mother who is raising two kids by herself in the western part of Belfast, and also happens to be a customer of Budget Energy, expressed her astonishment regarding the surge in her utility bills.
She expressed that the timing was absolutely terrible and insisted on taking immediate action to address the situation.
"I cannot help but contemplate the additional burden faced by families - not solely individuals like myself - who belong to the impoverished working class. How much longer will we be able to withstand all of this?" she shared with BBC Radio Ulster's Evening Extra.
I became aware of the increase solely through an electronic message.
Deirdre McCausland, a single mom residing in west Belfast, expressed her astonishment at the surge in expenses.
This couldn't have happened at a more inconvenient time. Right before the summer season starts, my kids just finished their last day of school today, and now we're unexpectedly burdened with all these expenses.
I can't help but ponder, when will it come to an end?
I have a teenage child who is 14 years old and another one who is nine. During my own childhood, my parents shielded me from the hardships of poverty. Unfortunately, I am unable to provide the same protection for my kids. The influence of social media has made them more aware than ever of the challenges that await them in the future.
"What a complete mess and action must be taken to address it."
What impact will this have on the payment of invoices?
Most customers can expect their supplier to keep their tariffs at the same level or reduce them, however, the removal of EPG support will result in an actual increase in their bills.
Raymond Gormley from the Consumer Council expressed his disappointment, stating that prices were still around twice as high as they were before the Covid-19 outbreak.
He stated that the government will evaluate the necessity of the program every quarter until the following spring.
Therefore, if there is a considerable rise in energy prices during the winter season, the Consumer Council will present the case to the government advocating for the restoration of a financial assistance program.
Decreasing electricity costs have been counterbalanced by a decrease in financial aid from the government.
Power NI holds the position of being the biggest provider of electricity in Northern Ireland, catering to a considerable amount of 479,000 residential electricity consumers.
The company declared a reduction of 7.1% in its regular pricing, however, due to the discontinuation of the government benefit, consumers will witness an approximately £49 increment per annum.
This implies that an average yearly invoice will increase from £966 in June to £1,015 starting in July.
SSE Airtricity, Electric Ireland, and Budget Energy have decided to keep their prices unchanged. However, customers should brace themselves for an average increase of approximately £127 in their annual bills.
Click Energy is lowering its regular rate by 10.36% and making adjustments to other rates as well to balance out the decrease in government assistance. This means that customers can expect their average annual bills to remain unchanged.
It is the tiniest among the five electricity suppliers in Northern Ireland, catering to approximately 24,000 customers.
Source of the image, Getty Images
SSE Airtricity supplies gas to approximately 195,000 clients residing in the Greater Belfast region.
SSE Airtricity has recently declared a drop of 12.2%, which will be applicable starting this July. Nonetheless, customers will perceive a rise of roughly £134 in their annual gas bills due to the absence of government assistance.
This implies that the average consumer's yearly invoice will increase from £1,266 in June to £1,399 in July.
SSE Airtricity caters to approximately 195,000 clients in the wider Belfast region, as well as 3,200 customers in the Gas to the West vicinity.
Customers of Firmus Energy will see a rise of approximately £328 in their bills across both the Ten Towns gas network and the Greater Belfast gas network regions.
If you reside in the Ten Towns gas network vicinity, the usual yearly invoice is expected to increase from £1,147 during June to £1,475 by the time July arrives.
Customers in the Greater Belfast vicinity will experience a regular increase in their bills. The amount they pay, which currently stands at £1,190, will surge to £1,518 starting from the month of July.
Between January and March of this year, residents in Northern Ireland enjoyed a noteworthy reduction of 13.6p per unit for electricity and 3.9p per unit for gas on their energy bills.
The assistance provided during the period of April to June 2023 experienced a decrease - invoices were given a deduction of up to 3.8p per unit for electricity and 2.6p per unit for gas.
Starting from July 1, 2023, the EPG will decrease from approximately £454 per annum in savings for the typical household to zero.
In Northern Ireland, the Utility Regulator enforces regulations on the leading providers: Power NI, the electricity company, SSE Airtricity, the gas company in greater Belfast, and Firmus Energy, the gas company in the Ten Towns network. These regulations control the prices set by these suppliers.
The governing body authorizes the highest charges determined by the expenses associated with delivering the service and a slight margin of profit.
