Natural gas tariff down to the lowest rate since 2011

This is the third successive price drop in the last 12 months which means from the start of October the average customer in the Ten Towns network will pay close to 40% less for their natural gas than September 2019.

firmus energy’s domestic customers can expect their typical annual tariff to reduce by £63 per year making it it’s cheapest tariff since 2011.

Michael Scott, Managing Director of firmus energy said: “We recognise that many households and businesses are facing severe financial uncertainty because of ongoing Covid-19 restrictions, while others will have seen their energy consumption change significantly as a result of working and schooling from home.

“We appreciate the hardship that many of our customers are facing and are committed to providing the lowest possible prices to ensure natural gas continues to be an attractive offering for both domestic and business customers.

“More and more homeowners are seeing the environmental and lifestyle benefits of natural gas which provides instant heat, a constant supply of hot water, peace of mind of never running out and frees up space in the home. It is a much cleaner fuel than oil too so we are witnessing a surge in homeowners, who care about their environmental impact, making the move to natural gas.3 The announcement will be welcome news to the 50,000 customers we supply in our Ten Towns Network.”

As part of the move firmus energy has issued letters to all its Ten Towns customers to confirm the 12.48 reduction. Customers can expect these in the next couple of days.

The reduction follows consultation with the Utility Regulator, the Consumer Council for Northern Ireland and the Department for the Economy.

In response Utility Regulator also welcomed the reduction, Utility Regulator Chief Executive, Jenny Pyper said: “Given the ongoing impact of the Covid-19 pandemic and as we approach the winter months, this tariff reduction is very welcome news for households and small businesses across the Ten Towns area.

“Our regulatory scrutiny ensures that tariffs always reflect the actual costs of supplying gas to consumers. We always make sure that, should costs fall, customers see the benefit in reduced bills as soon as possible. This is firmus energy’s second reduction in 2020, with customers having already seen a 21.2% decrease announced in March. This latest decrease means a typical firmus energy domestic credit customer will see a saving of around £63 per year.

“Firmus energy’s domestic gas tariff continues to compare well with bills in GB and RoI. Tariffs for firmus energy’s customers are currently 37% below the Bord Gais standard tariff in RoI and 10% lower than the Default Tariff Cap level in GB.

“The decrease is due to a combination of the supplier over recovering revenue during the current tariff period, as well as the impact of falling commodity costs. The over recovery was caused in large part by a one off decrease to distribution network charges, a reduction that is specific to the Ten Towns area.

“At this time, there will be no change to the regulated tariff for SSE Airtricity Gas Supply in the Greater Belfast area. As always, we will continue to keep the tariff under review.”

Meanwhile Michael Legg, Head of Energy Policy at The Consumer Council, added: “We welcome the price decrease announced for consumers in the Ten Town’s area, which will be a great relief to many during these difficult times.

“The 12.48% price reduction will benefit around 50,000 domestic gas consumers and small businesses in the Ten Towns area. Households will see a reduction of up to £60 on their typical annual gas bills. This will be especially welcome for those consumers in vulnerable circumstances, as the average weekly discretionary income in Northern Ireland is £119 per week, which is approximately £100 lower than in the rest of the UK.”

This tariff announcement marks the conclusion of a review undertaken by the Utility Regulator and firmus energy, in consultation with the Department for the Economy and the Consumer Council for Northern Ireland.

Customers who want advice on their natural gas bills or direct debit payments should contact the firmus energy Customer Services team on 0330 024 9000. Information on connecting or switching to firmus energy natural gas can also be found at www.firmusenergy.co.uk.

For free and independent advice on how to save energy please contact NI Energy Advice Line on 0800 111 4455.

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