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Dr Esmond Birnie was commenting after MLAs yesterday heard evidence that the price of heating a home in the Province rose by 70% last month.

At a meeting of Stormont’s economy committee, representatives from both the Consumer Council and Utility Regulator also warned that heating costs will remain high for several months.

Dr Birnie said such price hikes have a “particularly strong effect in Northern Ireland” where households spend a higher proportion of their income on heating compared to the rest of the UK.

“If people have to use up some of their household income, additionally, to spend on these higher heating costs, it means they have less money to spend on other things, therefore demand in the shops, demand for hospitality and other parts of the economy, there is a knock-on negative effect. It is a serious situation, because fundamentally it is caused by world level developments. Sadly there is not a huge amount that can be done by governments.

“There is a certain amount can be done through the benefits system to soften the worst impacts for those on the lowest income – particularly retired people. But for people in work, or just managing, this is another challenge.”

Peter McClenaghan from the Consumer Council told MLAs: “The Consumer Council track home heating oil, gas and electricity prices as they impact the consumer.

“In the month of October prices to consumers for heating their homes has increased by 70%; that is a really significant figure and it is going to continue to increase.”

Kevin Shiels from the office of the Utility Regulator added: “It is really important that the committee recognise that this isn’t just a short-term blip that is going to last a few weeks or a month or two.

“These prices are now forecast to be locked down for the rest of this winter and indeed into the next spring.

“Once all of these price rises come through they are going to stay at high levels for some time and there won’t be any short-term respite.”

Hike in home heating costs will ‘hit Northern Ireland harder than rest of UK’