Daily Mirror (Northern Ireland)
ENERGY BILLS HIKED 17.75% BY GAS FIRM
£78 rise in average bill fuelled by wholesale price hike
GAS company Firmus is to hike its prices up by nearly 18%, it said yesterday.
The firm claimed the hike follows an increase in global wholesale gas prices, and will apply to the Ten Towns Network area.
The 17.75% increase will apply from April 1, but “follows three price reductions totalling 37% over the last 18 months that led to prices being at an historic low for customers”.
The change in tariff price means the average household bill will rise by £1.43 per week the firm says and brings prices back to “broadly summer 2020 levels”.
The Ten Towns Network area includes Antrim, Armagh, Ballymena, Ballymoney, Banbridge, Coleraine, Craigavon (including Lurgan and Portadown), Limavady, Derry, Newry and more than 25 other towns and villages in the surrounding areas.
Firmus Energy managing director Michael Scott said: “We know price stability is important for our customers but the increase of wholesale natural gas costs on the global market, which are beyond our control, have unfortunately made this increase inevitable.
“During 2020 the price of wholesale gas decreased dramatically on the world markets, leading to us being able to offer our lowest ever tariffs.
“Today’s announcement, while unwelcome, is a sign of the market readjusting to more standard levels.
“Any increase is never welcome news and we recognise this comes at a particularly difficult time for many.
“We want to assure our customers that we will continue to monitor and review our tariffs to ensure customers are getting the best prices possible”.
Last month, Utility Regulator John French said the firm “submitted a request to increase its Ten Towns tariff by 17.75% or £78 per year”.
He added: “This increase reflects a significant rise in the cost of wholesale gas over the last year. The price of wholesale gas traded on the ‘day ahead’ market has nearly doubled since January.
“After this increase, the average Firmus energy bill in the Ten Towns licence area will be £518 per year.
“This compares to the annual average gas bill in GB of £536 and £685 in ROI.”
Raymond Gormley from the Consumer Council described the hike as “unwelcome for around 51,000 of Firmus Energy’s customers and small businesses, especially during a time when many are experiencing increasing pressures on their household budget”.
He added: “However, we are aware the main driver is the significant rise in the cost of wholesale gas globally.
“We work closely with the Regulator to ensure consumers are protected and supported and that there are no unnecessary costs being added or additional profits being made by the supplier.”