Energy bills price hike as governmental support is diminished

A reduction in the level of government support for energy bills is likely to increase prices for households across the province from July 1.

Wholesale energy costs are falling but so is the level of government support, as the Energy Price Guarantee discount on electricity and gas approaches its end.

The Utility Regulator is set to approve the increased prices by some major energy suppliers.

The resultant effect is that NI households are set to experience a small, yet significant, increase in their energy bills, as the cost-of-living crisis continues to most seriously impact the most vulnerable.

In general, metrics indicate that energy bills were lower here in Northern Ireland throughout the winter compared to those delivered to households in mainland GB.

The Energy Price Guarantee (EPG) started in Britain in October and one month later in Northern Ireland, which meant there was backdated support which has now come to an end.

From January to March 2023, energy bills across the province were being discounted by up to 13.6p per unit for electricity and 3.9p per unit for gas.

That support was reduced from April to June 2023 and accordingly bills were discounted by up to 3.8p per unit for electricity and 2.6p per unit for gas.

In Northern Ireland the Utility Regulator imposes price controls on the major energy suppliers: Firmus gas, SSE gas and Power NI.

The regulator approves the maximum tariffs based on the costs for providing the service and a small profit margin.

Other suppliers in Northern Ireland must then compete against the regulated tariff in an attempt to win new customers.