Shock Rise In Electricity Bills Condemned

Independent shopkeepers are angry about a 'shock' rise in the cost of electricity.

The NI Independent Retail Trade Association (NIIRTA) has expressed major concern about the announcement by Power NI [formerly NIE] of a 20% electricity hike for both domestic and small business customers.

Power NI said on Thursday that the 18.6% hike would come in to effect on 1 October and that means the average annual household electricity bill will rise by more than £90.

Already the Northern Ireland Consumer Council has criticised the move, calling it a "massive blow" for households coming into the winter.

Also commenting, Glyn Roberts NIIRTA Chief Executive, who met with senior officials from Power NI yesterday, said: "This is very bad news for both domestic and small business customers of Power NI that their bills are to rise by 19%.

"The timing of this hike could not have came at a worse time for consumers and independent retailers.

"For small traders this hike is a double blow. Hard working families will face an even greater impact on their disposable incomes and could well reduce spending with local retailers as a result," he complained, after the meeting.

"Furthermore small traders will face huge pressures in trying to absorb such a dramatic hike in their energy bills and still remain competitive," he said, adding, "We would urge all local small businesses and independent retailers to work with Power NI to look again if they are on the right tariff and to make sure that they pay their electricity bills by Direct Debit which can save them up to 4%.

"NIIRTA has been working with Power NI to develop support packages for the installation of energy saving LED lighting and Refrigeration which could result in a very significant reduction in costs for business owners."

He concluded: "The NI Executive as a matter of urgency must ensure that the new extension to the Small Business Rate Relief Scheme quickly passes through the Assembly to support those who are going to be hit hard by this hike."

Also critical was Alliance MLA Stewart Dickson - who has expressed serious concerns that Power NI are increasing their prices by 18.6% and said the move will have serious implications as regards fuel poverty.

"This is a very serious hike and it will have a real impact on households in terms of fuel poverty.

"We have had very harsh winters recently and this increase in electricity prices could have a profound effect on people who are already struggling to make ends meet, and could potentially have to make life or death decisions.

"These are very difficult economic times, with household bills and the price of food at a high level, and this increase is a worrying development.

"I understand that the cost of producing electricity is high; however, this is a very large price increase that customers are facing."

As winter approaches, he concluded: "It is very important that we look at radical solutions to the energy question and we should be exploring how we can increase the use of renewable energy and employ home insulations schemes to help people keep their energy bills as low as possible."

Larger companies - involved in manufacturing - have also said that rising electricity prices will have a massive impact and will further slow any recovery from the recession.

Speaking in response to today's announcement of an 18.6% rise in electricity costs, Manufacturing Northern Ireland (MNI) Chief Executive Bryan Gray said today's news is a "disaster for the manufacturing sector".

In April, Phoenix Gas also increased its prices - by a huge 39% - after the company blamed the rise on wholesale fuel costs and said the increase would apply to Phoenix Supply domestic and small business customers in the greater Belfast and Larne areas.

See: Gas Customers Rocked By Price Hike

(BMcC/GK)