Utility regulator predicts higher prices for SSE Airtricity and Firmus Energy customers

Gas prices are set to rise again in Northern Ireland in the coming weeks, according to the utility regulator.

It comes as inflation hit a record high of 10.1% on Wednesday.

Firmus Energy and SSE Airtricity customers will see a price hike of around 30%.

Utility Regulator Chief Executive, John French said it is down to rising prices in wholesale gas prices:

“Russia has reduced its gas flows into via the key Nord Stream 1 pipeline to Europe by 80%. These price movements have been further exacerbated by Asian and South American countries buying more liquefied natural gas (LNG), the higher than usual temperatures in Europe, outages in the French nuclear power station fleet, and historic price rises in the US gas market.

“The price impact of these events has been considerable.

"For example, wholesale gas being sold for consumption in winter 2022 was trading at £2.41 per therm on 1 June 2022. 

"By market close on 16 August 2022, it had reached £5.62 per therm. Unfortunately, these increases in wholesale gas price increases will have an impact on consumers in Northern Ireland, as wholesale energy costs now make up three quarters of consumers’ bills.

“Therefore, there will be increases in the regulated gas tariffs (SSE Airtricity Gas supply and Firmus Energy) in Northern Ireland.

"These increases will be announced in the coming weeks, once our reviews have been completed.

"At this stage, we are reviewing regulated gas tariffs only, and are keeping the situation on regulated electricity tariffs under review.

The announcement comes amid the escalating cost of living crisis.

On Monday the Chancellor held talks with Stormont Ministers and announced a new joint taskforce to try and resolve the uncertainty over £400 energy payments.

They are set to be rolled out in Great Britain from the autumn but there are questions around how they will be made in Northern Ireland in the absence of a functioning Executive.

Mr French said help is available for any households which are struggling: “Consumers who are worried about the impact of these higher prices should always contact their electricity or gas supplier in the first instance, to discuss the options available to them.

"In addition, there are also a number of agencies who can provide free and independent advice to households, including Advice NI, Christians Against Poverty, and Money and Pensions Service,” he added.

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