Power NI to increase prices for domestic customers by 27.5%

Northern Ireland’s largest electricity company has announced that prices will increase by 27.5% from the beginning of July for domestic customers.

The rise announced by Power NI will affect more than 461,000 households who will see their average bill jump by around £204 a year.

It is the latest in a series of price hikes announced by energy companies affecting customers in Northern Ireland.

The company said the rise is “entirely due to the sustained unparalleled price increases witnessed in the wholesale energy markets, which have been impacted by ongoing global issues”.

The tariff change has been approved by the Utility Regulator.

William Steele, director of Power NI customer solutions, said: “We work hard to keep our prices as low as possible and have absorbed costs for as long as we can.

“Regrettably, geopolitical factors outside our control have resulted in prolonged high costs in the international wholesale energy markets.

“Like other suppliers, we have no choice but to pay these increased costs, which feed into the price of wholesale electricity and have a knock-on effect on tariffs.

“In these challenging times and with such a volatile market, we held off making this change for as long as possible, with this price change not coming into effect until July 2022. As soon as we see an opportunity to reduce prices, we will do so without delay.”

Raymond Gormley, head of energy policy at the Consumer Council, said: “This is Power NI’s second tariff increase this year and its biggest since October 2008.

“It will impact more than half Northern Ireland’s households, many of whom are already upset, worried, and angry about energy price increases.

“While consumers get that price increases are happening due to global reasons, that knowledge does not help when it comes to paying their bills.

“With 53% of prepayment electricity consumers telling us they have had to cut back on food purchases to be able to afford a top-up, many households are going to need significant financial support in the coming winter.”

John French, chief executive of the Utility Regulator, said: “We continue to see a lot of volatility in the wholesale energy markets, which makes predicting when prices will start to drop extremely difficult.

“However, if wholesale prices do begin to reduce, our system of regulation in Northern Ireland allows us to act to make sure that reductions are fully passed on to consumers as quickly as possible

“I understand this is not an easy time for many customers.”