A 9.8% increase to regulated gas tariffs in the Greater Belfast area has been announced by SSE Airtricity Gas Supply. This change in tariff applies to domestic and small customers[i] and will come into effect on 1 April 2021.
Commenting on the announcement, John French, Chief Executive of the Utility Regulator said:
“In February, SSE Airtricity Gas Supply provided a submission to the Utility Regulator to increase their regulated gas tariff by 9.8% or £46 per year. We have accepted this submission following a detailed review of their gas purchasing strategy, regulatory reserves[ii] and operating costs.
“The main reason behind this tariff increase has been a rise in wholesale gas costs. The price of wholesale gas traded on the ‘day ahead’ market has nearly doubled since January 2020.
“After this increase, the average SSE Airtricity Gas Supply’s bill in the Greater Belfast licence area will be £514 per year. This compares to an annual average gas bill in GB of £536, £685[iii] in RoI and £518 in Firmus Energy’s Ten Towns licence area[iv].
“I recognise with Covid-19, that this increase has come at the worst possible time for households and small businesses. We have therefore been working with the Consumer Council and the energy industry to ensure that consumers and businesses are supported. I would encourage anyone who is worried about their energy bill to contact their supplier and access the help and support that is available.
“We will continue to proactively review wholesale energy costs and ensure the market is competitive and that consumers are fairly treated.”
Further information on the support available to energy customers is available at www.nidirect.gov.uk/covid-19-energy-debt-advice and within the consumer protection section of our website. The Consumer Council’s website has energy advice for consumers during these difficult times and also provides an independent energy price comparison tool to help consumers save money.
A number of agencies can provide free and independent advice, including Advice NI, Money and Pensions Service and Christians Against Poverty. There is also more information on support for natural gas customers from the new www.naturalgasni.com website.
Today’s announcement marks the conclusion of a review undertaken by the Utility Regulator and firmus energy, in consultation with the Department for the Economy and the Consumer Council for Northern Ireland.
A briefing paper on the tariff review has been published.
[i] Business customers using less than 2,500 therms per annum.
[ii] Also referred to as over/under recovery. An explanation on these costs is provided in the briefing paper.
[iii] Exchange rate of 0.888 rate used in calculation.
[iv] Comparisons based on a domestic credit (non-prepayment meter) customer using 12,000 kWh per annum. Prepayment customer average annual bill comparisons may vary.
Notes
For further information, please contact Adele Boyle on 07787 279584.
- The Utility Regulator is the independent non-ministerial government department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.
- This tariff review commenced in February 2021 and covers around 178,000 customers in the Greater Belfast area. The review also covers customers in the Gas to the West area where 1,200 customers are connected.
- The average domestic credit customer will see their bills increase by around £46 per year and the average bill will rise to £514 per year.
- The SSE Airtricity Gas Supply standard tariff is 4% lower than the average of the GB price cap. Both have VAT rates of 5%.
- The SSE Airtricity Gas Supply standard tariff is 25% lower than the Bord Gais standard gas tariff in the RoI. This includes VAT at 13.5% in RoI and 5% in NI.
- The Greater Belfast area covers: South, West, East and North Belfast; Carrickfergus; Newtownabbey; Duncrue and Harbour; Lisburn; Carryduff; Castlereagh; Ballygowan; Newtownards; Larne; and North Down