Business

Power NI announces first electricity price increase in four years

Power NI has announced the 5.6 per cent tariff increase for domestic electricity customers and the new rate will come into effect on October 1.
Power NI has announced the 5.6 per cent tariff increase for domestic electricity customers and the new rate will come into effect on October 1. Power NI has announced the 5.6 per cent tariff increase for domestic electricity customers and the new rate will come into effect on October 1.

NORTHERN Ireland's largest electricity retailer has announced a tariff increase of 5.6 per cent - the first price hike in four years.

Power NI has announced the 5.6 per cent tariff increase for domestic electricity customers and the new rate will come into effect on October 1.

The jump in tariff comes after a 10.3 per cent decrease in April 2016, a 9.2 per cent decrease in April 2015 and no change in 2014. The last increase to tariffs was 17.8 per cent in 2013.

The Utility Regulator has said that the latest rise was "unavoidable" given the increases in wholesale energy costs.

"Agreeing an increase to Power NI’s domestic electricity tariff is not a decision that we take lightly," chief executive Jenny Pyper said.

"We carry out extensive scrutiny of Power NI’s costs to ensure that any change to their tariff is justified. Domestic electricity prices in Northern Ireland have not increased in four years, but unfortunately, due to rises in wholesale energy costs, this increase is unavoidable.

"After two price decreases in 2015 and 2016, we signalled last year that we expected the unprecedented period of low global wholesale energy costs to end, with the likelihood that consumer prices would increase. Since the last price decrease in April 2016, forward wholesale costs have risen by around 11per cent."

In spite of the rise in costs for domestic consumers Ms Pyper insists electricity will remain cheaper in the north than in the rest of the UK.

"Northern Ireland will continue to have amongst the lowest domestic electricity prices in the UK and RoI. Power NI’s average annual domestic bill will be around 22 per cent cheaper than the GB average annual bill and around 30 per cent cheaper than the ROI average annual bill."

"Northern Ireland consumers also have a choice of five domestic electricity suppliers and I would encourage them to shop around and explore the options available to them," she added.

This tariff announcement marks the conclusion of a review undertaken by the Utility Regulator and Power NI, in consultation with the Department for the Economy and the Consumer Council for Northern Ireland.

Power NI continues to be Northern Ireland’s number one electricity company, supplying around 70 per cent of the domestic market’s electricity needs and 49 per cent of the commercial market.