Following the announcement by SSE Airtricity Gas Supply that it will be increasing its gas prices by 7.8% for domestic and small business customers[i] in the Greater Belfast area, Jenny Pyper, the Utility Regulator’s Chief Executive said:
“We understand that increases in energy prices are never welcome and have therefore only approved this tariff increase following extensive scrutiny. We act on behalf of customers to regulate the prices that SSE Airtricity Gas Supply can charge in the Greater Belfast area and have carefully reviewed each element of this new tariff to ensure it is justified.
“The average domestic customer[ii] will see their bills increase by £39 per year. There are a number of reasons for this. Our regulation requires SSE Airtricity Gas Supply to return to customers any additional revenue (known as over recovery) that they make during the previous tariff period. Last year, this element had the effect of reducing the tariff from what it would otherwise have been. However, as the over recovery is a lot lower this year, it means that there is less of a reduction to be applied. This explains around half of the increase this year.
“The remaining portion of the increase is due to the increase in international energy costs, which make up a significant portion of your bills, and network charges which have also risen in line with inflation.
“This increase will still leave the SSE Airtricity Gas Supply tariff for an average domestic credit customer 24% lower than the Bord Gais standard tariff in the Republic of Ireland and 14% cheaper than the GB average standard tariff. We do however recognise the impact that this increase will have on households and small businesses.
The tariff increase will come into effect from 1 April 2018. Today’s announcement follows the ongoing tariff review process that is carried out by SSE Airtricity Gas Supply and the Utility Regulator, in consultation with the Department for the Economy and the Consumer Council for Northern Ireland.
A briefing paper on the Utility Regulator's tariff review is also available.
[i] Business customers using less than 2,500 therms per year.
[ii] A domestic customer on a standard credit tariff with an average consumption of 12,500kWh p.a. including VAT.
For further information, please contact Adele Boyle on 028 9031 6664 or 07787 279584.