NIE to Increase Prices

Old news now, but last week Northern Ireland Electricity announced like its counterparts in mainland Britain that electricity prices are to rise by 14% with effect from July, with a further rise in the near future of 15% highly likely by Autumn 2008.

NIE blamed like other electricity companies prior, that the increase in wholesale fuel costs, citing that since their last pricing review, they had increased by 85%. NIE has up until now absorbed the cost, however with the continuing increases in oil, gas and coal prices, it is highly likely this is the first of many price increases that will occur in the near future.

"We had hoped to hold our prices until later in the year, but wholesale gas, oil and coal prices have increased substantially in recent months. This increase is in line with recent GB energy supply companies' pricing announcements, and both the utility regulator and the Consumer Council have been closely consulted. Over 453,000 of our customers get a discount on their electricity supply, and I would encourage more of our customers to take advantage of one of our discount schemes."
NIE Statement


The 14% increase has effectively handed the government with a £10m windfall according to the Consumer Council of Northern Ireland, through VAT on fuel at 5%. Which they hope the MPs will lobby the Treasury to return to the NIA to reinvest in programs to assist those in fuel poverty. Northern Ireland has one of the highest rates of fuel poverty in all of the UK.

"The sheer scale of these energy price increases should trigger an emergency financial package to help alleviate hardship in fuel poor households this winter. All possible ways of paying for this emergency fund must be urgently explored. Consumers should make sure that they are receiving all payments they are entitled to, budget carefully and save money where they can and be as energy efficient as is healthily possible."
Eleanor Gill, Consumer Council