NI electricity market faces major overhaul

The electricity market in Northern Ireland faces a major overhaul, with the regulator considering allowing market leader Power NI to set its own prices.

In May, the Utility Regulator for Northern Ireland will consult on deregulating the supplier in an attempt to increase competition in the market.

Power NI claimed deregulation would bring tariffs down to the lowest price in 16 years, saving domestic customers in Northern Ireland an average of £50 per year.

The regulator said regardless of the outcome, “we will continue to regulate the retail market to protect consumers and prevent abuse as we do for other suppliers now who we don’t price regulate”.

Formerly state-owned Power NI is the dominant market player, with a 52 per cent market share. It was the only electricity supplier in Northern Ireland until 2010 and its prices are set annually by the regulator.

Five more suppliers have since joined the market – including SSE Airtricity and Electric Ireland – and they are free to set their own prices.

When contacted by Utility Week, the majority of big six suppliers and large independents in Britain said they had not yet considered whether to play in a more competitive Northern Irish market.

However, a spokesperson for Npower’s parent company RWE said that although it was not in a financial position to buy into any market, it might consider renewable projects in Northern Ireland in the future.

Read Utility Week’s profile of the Northern Irish electricity market here.