Northern Ireland gas prices on the rise as Firmus announces increase while living costs soar
Firmus energy has announced another significant increase in gas prices to come into force later in the month.
The 33.57% increase comes in from 24 February for people in the energy provider's Ten Towns area.
The Ten Towns area includes: Londonderry, Limavady, Coleraine (including Portstewart and Bushmills), Ballymoney, Ballymena (Broughshane), Antrim (including Ballyclare and Templepatrick), Craigavon (including Portadown and Lurgan), Banbridge, Newry (Warrenpoint), Armagh (Tandragee) and more than 25 other towns and villages in the surrounding area.
Around 59,000 customers are affected. They will see an increase of almost £300 a year on their bills to around £1,300.
This is the latest rise in gas prices since late last year. In September the average gas price for the Ten Towns area was around £518.
Firmus blamed the latest rise on a "significant" increase in wholesale gas prices since 3 December.
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Firmus energy customers in Greater Belfast and in the gas to the West network area will not be impacted by this tariff change.
John French, Utility Regulator Chief Executive said: "In late December 2021, we received a submission from Firmus Energy to undertake an ad-hoc review of their regulated Ten Towns tariff for domestic and small business consumers. The review took place against a continuing increase in wholesale gas prices, which have risen significantly since Firmus Energy’s last tariff increase on 3 December 2021.
“We have now analysed and evaluated Firmus Energy’s submission and consulted with the Department for the Economy and the Consumer Council for Northern Ireland. This review has unfortunately concluded that a 33.57% increase from 24 February 2022 is needed to reflect the ongoing and exceptional price spikes that have been experienced in the global wholesale market. “This will regrettably mean that the average annual household gas bill in the Ten Towns licence area will increase to £1,293 per year."
He continued: “The unparalleled increases in the cost of wholesale energy at a global level have persisted and continue to impact on supplier costs. This has been exacerbated by the overall volatility within the market, with significant price movements occurring on a daily basis.
“Unfortunately there appears to be no end in sight during 2022 for significantly above trend wholesale prices. However, if wholesale prices begin to reduce, our system of regulation in Northern Ireland allows us to act to make sure that reductions are fully passed onto consumers as quickly as possible. “We are extremely aware of how this further energy price increase will affect consumers in Northern Ireland. We established a working group with the Department for the Economy, Department for Communities and the Consumer Council for Northern Ireland to actively explore what practical measures can be brought forward to alleviate the burden of these higher prices on consumers, this winter.
"I am pleased that the Northern Ireland Executive has provided significant funding to support local energy consumers. “I have written to all energy suppliers and reminded them of their regulatory obligations to avoid customer disconnections and consider other approaches to protecting customers in debt.
"We are also following this up with individual meetings with all energy suppliers, to ensure they are doing all they can to support their customers. “I would encourage anyone worried about paying for their energy bill to contact their supplier as soon as possible.
"There are also a number of agencies who can provide free and independent advice, including Advice NI, Money and Pensions Service and Christians Against Poverty.”
Raymond Gormley, head of energy policy at the Consumer Council said: “The Utility Regulator forewarned us that energy price rises of this nature will continue because of exceptionally high global wholesale gas prices, however it is never good news for consumers when prices go up.
"This is going to put extreme pressure on many households as they try to pay their gas bills. “With the cost of energy continuing to increase, the Consumer Council is concerned about a potential rise in fuel poverty as many families may struggle to find the extra money they will now need to pay for heating. “We welcome Firmus Energy’s commitment to assist some of our most vulnerable consumers through support for the Winter 2021/22 Emergency Fuel Payment Scheme, but it is clear that energy companies including Firmus, policy makers, The Utility Regulator, charities and the Consumer Council must continue to work together to develop sustainable solutions to help support those in need as the problem of high fuel prices will be with us for years.”
Consumers struggling with their energy bills or topping up their meter are advised to contact their supplier directly for support.
Support is also available from the Consumer Council on 0800 121 6022 or by emailing contact@consumercouncil.org.uk.
The Consumer Council’s website has a number of free resources including Switch On: A Guide for Home Energy Users, which helps consumers be more energy efficient at home, get the best from their electricity or gas supply, and save money.