Power NI is the latest company to announce an increase to its tariffs due to a rise in wholesale energy costs.
The increase of 13.8 per cent, or £1.33 per week, has been agreed with the non-ministerial government department, the Utility Regulator, and will come into effect from 1 October.
In an announcement today (16 August) the company said the price hike is being driven by rising fuel costs used in electricity generation such as gas, which has increased by 30 per cent in the last year.
Stephen McCully, managing director of Power NI, said: “Putting our prices up is the last thing we want to do, but unfortunately we are at the mercy of fluctuating world fuel prices.
“Gas, the main fuel used to generate electricity here, has increased significantly by 30 per cent since we last set our prices.
“We’ve worked through a rigorous process with the Utility Regulator and our customers can be sure that although unwelcome, this increase is as low as possible and our prices are still cheaper than they were five years ago.”
Jenny Pyper, Utility Regulator’s chief executive, said global energy markets are “volatile” and that fluctuations in wholesale energy costs are out of the regulator’s control.
She added that she encourages customers to “shop around” for the best deal.
She said: “Approving a price increase is always a difficult decision. However, the reason for this increase is due to the rise in forecast wholesale gas prices which drive the price of generating electricity.
“Since the last tariff review in 2017, wholesale gas prices have increased by around 30 per cent. Consumers will have already seen this rise in world fuel costs this year through increases to home heating oil of almost 50 per cent and the cost of diesel at the pumps which has risen by 15 per cent.
“It is a fact that global energy markets are volatile. Looking back at the last five years there have been two Power NI tariff increases, two decreases and one year where prices were frozen. Whilst the Utility Regulator can provide relative stability in terms of the other regulated costs that make up a customer’s bill, fluctuations in wholesale energy costs are simply outside of our control.
“Northern Ireland consumers have five domestic electricity suppliers to choose from and I would encourage them to shop around and explore the options available to them.”
Power NI is Northern Ireland’s biggest supplier and supplies energy to more than 58 per cent of homes.
Several energy suppliers have announced increases to their tariffs in recent weeks.
Bristol Energy, a council-owned energy company, said it was increasing its tariff for the first time in its history.
The 12.6 per cent increase will mean an average monthly bill increase of £10.68.
Meanwhile medium-sized supplier Bulb hinted it may also raise its tariff due to the rise in wholesale costs. If this rise goes ahead it would be a third such increase by the supplier within a year.