The Utility Regulator will launch a ‘Buyer’s Guide’ to help business consumers benefit more from competition within the business electricity market. The guide follows on from the regulator’s recent inquiry into business electricity tariffs in Northern Ireland. The inquiry found that to some consumers, understanding the complexities of the electricity market was ‘like wading through treacle’.
The Buyer’s Guide is intended to help businesses negotiate their way through the market and enable them to understand better the structure of the electricity market, how the price of electricity is calculated and the processes involved in changing and choosing a supplier.
The guide will be launched at a briefing session for business consumers, at which the expected elements of the regulated electricity tariffs, applicable from 1 October 2010, will be explained. The briefing will take place at 2.30pm on Monday 28 June at the Utility Regulator’s office.
Shane Lynch, Director of Electricity at the Utility Regulator said:
“We took the recommendations from our inquiry into business electricity tariffs extremely seriously and have been focused on putting measures in place to assist business consumers to take full advantage of the developing market.
“Our briefing session on 28 June is part of a programme of regular seminars to provide an opportunity to inform and listen to business consumers. We have a responsibility to ensure the electricity market reaches its full potential and are committed to working with consumers and suppliers to achieve this.”
The briefing session on Monday 28 June is open to all business consumers, but places will be allocated on a first come first serve basis. If you would like to attend, please email adele.boyle@uregni.gov.uk or telephone 028 9031 6343. Following the event, the presentation and Buyer’s Guide will be available on www.uregni.gov.uk.
ENDS
For further information, contact Adele Boyle on 028 9031 6343 or 07794 965922.
Notes to Editors
1. The Utility Regulator (Northern Ireland Authority for Utility Regulation) is the independent non-Ministerial Government Department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.
2. The business electricity tariffs inquiry was announced on 11 November 2009. It was prompted following complaints by business consumers who experienced a rise in their electricity bills after a Public Service Obligation (PSO) rebate ended in October 2009. From 57,000 business customers, 17 forwarded written complaints were received by the Regulator and the DETI. The inquiry involved interviews with the17 businesses and four suppliers.
3. The final inquiry report was launched on 18 March 2010, and the key findings were:
• communication to customers on changes to their tariffs from October 2009 (specifically in regard to the PSO rebate) was unclear or not timely;
• comparing quotes between electricity suppliers is not always straightforward for customers:
• some customers find their electricity bills difficult to understand and missed the information about the rebate ending;
• there is evidence that customers do not fully understand the risk management options available to them:
• there is evidence that competition is developing and from the introduction of the Single Electricity Market in 2007, the number of customers switching suppliers has increased, however it is still relatively immature;
• of the 17 customers involved in the inquiry, five only received one quote; and
• 66% of business customers still remain with the incumbent supplier (NIE Energy).