Peer seeks UK Government support for Northern Ireland energy bills
Lord Rogan has called on then UK Government to do more to support Northern Ireland households and businesses with rising energy costs.
Speaking in a House of Lords Grand Committee debate, the Ulster Unionist peer said that, since October 2023, the cheapest prices from Northern Ireland’s largest supplier have been higher than prices under the energy price cap in the rest of the UK.
He continued: “All Northern Ireland households will shortly receive a £30 annual reduction on their electricity bills for three years, funded by His Majesty’s Government. On the face of it, this is welcome news - until you learn that households in Great Britain households will receive £150 per year.
“I understand the reason for the discrepancy is that one of the two environmental levies being removed from bills by the Chancellor does not exist in Northern Ireland. However, given the higher price of electricity in the Province, surely this should be taken into account as a means of redressing the current cost imbalance between the two parts of our United Kingdom.”
Lord Rogan told the Committee that around two thirds of Northern Ireland households use oil rather than gas as their primary method of central heating, making it the highest proportion by some distance of any UK nation.
He said: “This equates to roughly 500,000 homes, with the reliance on heating oil jumping to over 80% in rural areas.
“An analysis by the Consumer Council for Northern Ireland found that, in March of this year - following the closure of the Strait of Hormuz - heating oil prices in the Province rocketed by 92% with 500 litres costing consumers an eye-watering £627.
“A combination of funding from His Majesty’s Government and Stormont means that 340,000 lower-income households will receive a £100 payment towards their heating oil bills later this year. But it is simply not enough, given the ongoing uncertainty over oil supplies from the Gulf.”
Concluding his remarks, the former Ulster Unionist President said the situation for Northern Ireland firms was “equally challenging at best, given that large energy users are currently paying around 60% more than the EU median.”
He continued: “Businesses in the Province are already tied up in knots and additional costs caused by the ongoing Irish Sea border fiasco.
“Last month, Trade NI - the alliance of Hospitality Ulster, Retail NI and Manufacturing NI – came to Westminster to meet with Ministers and other key decision-makers to outline some of the practical interventions needed to support Northern Ireland’s competitiveness.”
Addressing Lord Whitehead, the Minister for Energy Security and Net Zero, Lord Rogan said: “I am unsure if you were part of these discussions but, if not, I would gently ask that you receive a full brief from your officials on the initiatives raised and consider how you and your Department might best assist.”