Large energy users could face bill increase under plans to upgrade the grid which has been labelled as 'frankly scandalous' by Manufacturing NI

It’s understood that currently the network element is around 18% of the total electricity bill.

The updates comes after the Utility Regulator proposes the grid owner, NIE Networks, spends £2.21bn between April 2025 to March 2031 to update the grid – 16% lower than the amount requested.

Small businesses could see a 3% to 9% increase to the network element of their bill.

Bills for typical domestic consumers who don’t change their usage or adapt to green technologies, will be £13 lower under the Regulator’s proposals than NIE Networks’ RP7 Business Plan.

However, domestic consumers who do increase their electricity usage and install heat pumps or use a home charger for an electric vehicle, will see their electricity costs increase. This additional electricity cost will be offset by a reduction to their home heating and transport costs.

The amount of revenue which NIE Networks collects via supplier tariffs is determined by the Utility Regulator through periodic price control reviews following scrutiny and challenge of the company’s business plans.

RP7 is the seventh regulatory price control for NIE Networks, and John French, Utility Regulator Chief Executive, said: “RP7 is creating the foundation for Northern Ireland’s journey towards net zero and will facilitate a more efficient use of the electricity system.

“Our decisions within this draft determination will ensure NIE Networks is fully able to support the energy transition in Northern Ireland.

"Whilst this additional investment will increase the network cost for electricity consumers, we will ensure that the transition is affordable, fair and inclusive for all.”

However, Manufacturing NI (MNI) chief executive Stephen Kelly voiced his outrage at the development and believes current prices are “hugely damaging” to businesses in the province.

“We will do a detailed study of the Draft Determination of NIE Networks Price Control in the weeks ahead. However, after a quick review it is frankly scandalous that it could result in our largest energy users seeing bills rise by up to 19%,” he said.

“NIE Networks made an operating profit of £117m last year passing a dividend to ESB in Dublin of £37m. This is an eye watering margin of 39% but even after finance costs their margin was still 25%. Levels their customers could only dream of.

“We have also seen our electricity generators secure obscene profit levels to the point where Governments have introduced new emergency tax powers.

“The Regulator’s own analysis shows that local firms already pay the second highest energy bills in Europe, significantly higher than in GB or Ireland. This is hugely damaging to our economy and our ambitions.

"If we need to look at evidence of the harm this causes, we have the experience of Ballymena which saw two large manufacturers close resulting in the need to find 6,600 new to replace the 2,000 jobs lost, a decline in the local GVA by some 13% and millions of pounds of both gas and electricity charges having to be taken up by the consumers who were left.”

As NIE Networks is a monopoly, its business plans have to be approved by the regulator.

The draft determination is open for consultation until March 22 next year.