Gas Customers Rocked By Price Hike

A huge hike in the price of gas has been slammed as a massive blow to consumers.

The news was confirmed last night, that a predicted Phoenix Gas increase in its prices would indeed by 39%.

The company is blaming the rise on wholesale fuel costs and said the increase begins on 1 May and will apply to Phoenix Supply domestic and small business customers in the greater Belfast and Larne areas. The Ulster Unionist Peer, Lord Empey (pictured) - who is the former party leader - said that the news about Phoenix gas would come as a hammer blow to consumers in the greater Belfast area.

"People are already reeling from big increases in fuel and food costs, and this is the straw that will break the camel's back for many families.

"Northern Ireland has the highest rates of fuel poverty in the United Kingdom, and this news will propel even more people into desperate circumstances. The Stormont Executive will need to urgently review its child poverty strategy to take account of the present day reality, and not an out of date wish list that has been irrelevant for the past two years," he said, last night.

Commenting for the Utility Regulator, Chief Executive Shane Lynch said he was conscious of the impact on household budgets in NI: "We scrutinise all price rises to ensure that the maximum tariff Phoenix can charge is justified.

"This increase is wholly attributable to rising wholesale gas costs."

However, the move is expected to push the average household bill to over £580 a year.

The NI Consumer Council said the price hike was a "massive blow" and risked pushing more consumers into fuel poverty.

Chief Executive Antoinette McKeown said they were calling on Phoenix to take action to help some of the most vulnerable households.

"They can identify customers that are struggling early on and give them the assistance they need," she said.

Meanwhile, Phoenix's competitor Firmus has said it will be holding consumer prices until the end of September.

It is set to freeze their prices at the current level until at least October of this year.

This means that Firmus Energy customers will now pay natural gas prices that are 33.5% less than Phoenix, a statement from the company claimed today.

They said that, over two years, this could equate to a saving of over £220 for an average home.

On their autumn price rise they also said that after 1st October, customers can be reassured that firmus energy's prices for greater Belfast will be at least 7.5% cheaper than Phoenix for the remainder of the first 12 months after they have switched and at least 5% for the second year.

Mark Prentice, Managing Director for Firmus Energy explained: "At a time when household budgets are under pressure, Phoenix Supply's price announcement will come as a shock for homes using natural gas.

"The good news is that households have a choice - stay with Phoenix and take a 39.1% increase or switch to firmus energy for lower gas bills."

A Sinn Fein Assembly candidate for West Belfast, Jennifer McCann, has hit out at the latest price.

"The Fuel Poverty Coalition has highlighted the stark fact that almost half our households are already living in fuel poverty.

"This hike by Phoenix Gas will have a major impact on the weekly household budget and will effect those who are already struggling due to low incomes and cuts in welfare benefits.

"I would strongly urge the Utility Regulator and Phoenix Gas to review this decision.

"I will also be pressing for, in the new mandate, that the Executive set up a Cross Departmental Ministerial Taskforce to prioritise and tackle the issue of fuel poverty as it is disgraceful that anyone should be dying because the cannot afford to heat their homes."

(BMcC/GK)