AROUND 57,000 households will see gas bills rocket again next month after Firmus Energy confirmed tariffs for its ‘Ten Towns’ network will rise by 38.2 per cent on December 3.
It comes two months after Firmus increased its prices by 35 per cent in response to the record surge in the cost of wholesale natural gas worldwide.
It will leave the average customer paying an extra £267 per year, and take the average annual gas bill close to £1,000, more than double the rate customers paid last winter.
Firmus said wholesale gas prices, which make up more than half of domestic gas tariffs in the north, have increased 430 per cent in a year, and are up by 136 per cent since the review that prompted its last price hike.
The Ten Towns area includes parts of counties Derry, Antrim, Armagh and Down.
Northern Ireland's Utility Regulator warned last month that domestic customers could face another 50 per cent rise in their gas tariffs due to the escalating costs in the wholesale gas market.
There are also implications for electricity bills. Budget Energy announced a 29 per cent hike two weeks ago, while SSE Airtricity announced a 9 per cent increase for its 170,000 customers.
The north’s largest domestic electricity supplier, Power NI, will shortly announce a rise.
The regulated nature of the gas industry here means suppliers must consult with the regulator before announcing an increase.
Utility Regulator boss John French said his body has been in talks with Firmus Energy since October, consulting with both the Department for the Economy and the Consumer Council.
“This review has unfortunately concluded that a 38.18 per cent increase from December 3 is needed to reflect the exceptional price spikes that have been experienced in the global wholesale market over recent months,” he said.
Mr French said the global increases over the past six months had been “unparalleled”.
"It is unclear how long these higher global prices will last, but increasingly, market analysts are talking about higher wholesale prices for the next 18-36 months.”
Firmus Energy’s chairman, David Dobbin, said the firm's hand has been forced.
“This is a not a Firmus issue," he said. "But a challenge faced by every local and national supplier of gas and electricity all of whom, sooner or later, will have to further increase their prices to meet the huge upsurges which have taken place in wholesale energy costs.”
