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The Utility Regulator has spoken of 'unparalelled increases in the cost of wholesale energy' with no end in sight as local supplier firmus energy plan to raise their prices by 33.57%. It means that the average annual household gas bill in the Ten Towns licence area will increase to £1,293 per year. This increase will see the average domestic credit customer bills increase by around £324 per year.
Commenting on the price increase, John French, Utility Regulator Chief Executive said “In late December 2021, we received a submission from Firmus Energy to undertake an ad-hoc review of their regulated Ten Towns tariff for domestic and small business consumers. The review took place against a continuing increase in wholesale gas prices, which have risen significantly since Firmus Energy’s last tariff increase on 3 December 2021.
“We have now analysed and evaluated Firmus Energy’s submission and consulted with the Department for the Economy and the Consumer Council for Northern Ireland. This review has unfortunately concluded that a 33.57% increase from 24 February 2022 is needed to reflect the ongoing and exceptional price spikes that have been experienced in the global wholesale market.
French continued “The unparalleled increases in the cost of wholesale energy at a global level have persisted and continue to impact on supplier costs. This has been exacerbated by the overall volatility within the market, with significant price movements occurring on a daily basis.
“Unfortunately there appears to be no end in sight during 2022 for significantly above trend wholesale prices. However, if wholesale prices begin to reduce, our system of regulation in Northern Ireland allows us to act to make sure that reductions are fully passed onto consumers as quickly as possible.
“We are extremely aware of how this further energy price increase will affect consumers in Northern Ireland. We established a working group with the Department for the Economy, Department for Communities and the Consumer Council for Northern Ireland to actively explore what practical measures can be brought forward to alleviate the burden of these higher prices on consumers, this winter. I am pleased that the Northern Ireland Executive has provided significant funding to support local energy consumers."
The Regulator has written to all energy suppliers and reminded them of their regulatory obligations to avoid customer disconnections and consider other approaches to protecting customers in debt. They are also following this up with individual meetings with all energy suppliers, to ensure they are doing all they can to support their customers.
If you are worried about paying for your energy bill you should contact your supplier as soon as possible. There are also a number of agencies who can provide free and independent advice, including Advice NI, Money and Pensions Service and Christians Against Poverty.
