Mutual Energy to release £4 million to reduce consumers' electricity costs
MUTUAL Energy is to contribute £3.8 million from its cash reserves to reduce electricity tariffs for domestic and business customers in Northern Ireland and help ease the burden during the covid-19 pandemic.
The utility, which owns and manages critically important gas and electricity assets including the Moyle Interconnector linking the electricity systems of Northern Ireland and Scotland, is a mutual organisation and does not have shareholders.
Under the unique mutual model, its objective is to return savings to all customers over the lifetime of its assets, and it reinvests any financial earnings into its infrastructure for the long-term benefit of energy users.
The Board decision to take the exceptional step of releasing almost £4m was supported by Mutual Energy's membership and approved by the Utility Regulator.
Paddy Larkin, chief executive of Mutual Energy, said: “Given the trying and uncertain times we're in, we wanted to do our best to lessen the burden faced by homes and businesses.
“This initiative is a very practical demonstration of Mutual Energy's modus operandi: ‘A Northern Ireland company working for consumers'. Following recent successful business performance and a detailed assessment of our current financial position, we are pleased to be in the position to take the unprecedented and exceptional measure.”
Welcoming the announcement, Jenny Pyper, chief executive of the Utility Regulator, said: “The Covid-19 pandemic has bought extra uncertainty and concern for consumers about their ability to pay bills. We have been working with a range of utilities to help consumers practically during this time.
“This contribution from Mutual Energy is another example of local utility companies stepping up to support consumers at this difficult time by putting some money back in their pockets.”