Regulatory models - NI and GB
Price regulation has existed in Northern Ireland since the privitisation of the energy industry. With such a small market, regulation acts as a protection to consumers where there isn’t sufficient competition to ensure fair prices, effective service standards and delivery of the necessary development of the market and infrastructure. In many larger markets where there are greater levels of competition, like Great Britain, this end price regulation did not exist until recently.
The GB tariff price cap is Ofgem’s approach to price regulation which began in 2019. The cap sets the maximum price for a unit of energy and daily standing charges for customers in Great Britain. Our system of price regulation closely reflects the key market inputs (e.g. fuel costs) and is more responsive to price movements meaning savings can be passed on more quickly than through the price cap. Recognising that the price cap was too slow in responding to market forces, Ofgem announced in August 2022 that the price cap would be reviewed quarterly, moving away from their six monthly reviews.
Ensuring fair and transparent tariffs is the focus of our approach in Northern Ireland and one that provides reassurance to consumers that they are paying a fair price for their energy. We scrutinise the costs incurred by suppliers and cap profits. We also respond quickly when prices fall to make sure these savings are felt in consumer bills as soon as possible.
For the latest figures comparing our energy prices with the GB price cap, please visit our bills and prices page. The most recent tariff review process information can be found in our electricity regulated tariffs and gas regulated tariffs pages.