Gas price hikes will be another blow for families says Sinn Féin's Ferguson

Sinn Féin's Ciara Ferguson has said news that households and businesses will suffer further hikes in gas prices in coming weeks will be another huge blow for Derry's workers and families.

The Foyle MLA was speaking after the Utility Regulator warned that households and businesses will face gas price hikes of at least 30 per cent in the coming weeks.

Ms Ferguson stated that families in Derry were already struggling to make ends meet and called upon the British Government to remove VAT on energy bills.

She said: “News that hard-pressed families are set to be hit with further price hikes will come as another huge blow.

“At the same time with inflation rising, the prices of food, fuel and other goods are all on the up, and the combined impact is hitting hard particularly on low and middle-income workers and families. Many of these families are already struggling to make ends meet.

“We are in the middle of a cost-of-living crisis, energy prices are soaring largely due to global demand issues and there doesn't seem to be an end in sight to the high gas prices.

"Sinn Féin is again calling on the British government to remove VAT on energy bills during this global price spike to help support families.

"It should also explore a windfall tax on energy generators similar to that introduced in other European states and redirect the money raised towards tackling fuel poverty.”

Kevin Shiels, director of retail and consumer protection at the Utility Regulator, admitted that the price rises was not welcome news.

However, Mr Shiels cited the gas bill spikes as being done to prices on gas being at a “historic high” and concerns over Russian gas exports to the rest of Europe being affected by the current political tension between Russia and Ukraine that might result in a possible military conflict involving the two nations.

He said: “Unfortunately we are continuing to see significant increases in the cost of wholesale gas prices.

“The wholesale price of gas accounts for over 50 per cent of the average domestic natural gas customer’s bill, therefore any change to these costs, will affect the price that suppliers pass on to their customers.

“Historically, the cost of gas would be around 50 pence per therm (the unit of measurement for natural gas), but in December 2021, we saw an all-time historic high of £4.71.

“There is also volatility in the market with significant movements in the cost of gas on a daily basis.

“The latest gas price spikes are being ignited by concerns over Russia’s gas exports to Western Europe and worries about a possible Russian/Ukrainian conflict.

“Whilst this isn’t welcome news, the Utility Regulator acts to protect natural gas consumers by ensuring that regulated tariffs always reflect the actual costs of supplying natural gas to homes and businesses.

“We have full sight of all the elements that make-up a customer’s bill, which we rigorously scrutinise.

“If you are worried about paying your energy bill, please contact your energy supplier who will be able to tell you what support they can provide and the options available to you.

“Further information on the support available can be found on our website www.uregni.gov.uk within the consumer protection section.

“This also includes details of the support provided by organisations such as Advice NI, Money and Pensions Service and Christians Against Poverty.”