NI Manufacturers' Electricity Bills Among Highest In Europe

Large manufacturers and businesses in Northern Ireland pay among the highest electricity bills in Europe.

The news came as the Utility Regulator published a report which, for the first time, provides a comparison of electricity prices in Northern Ireland with the rest of Europe.

The report found that for domestic consumers, prices were around the EU average.

For very small industrial and commercial consumers, electricity prices were also around the EU average. This category makes up about 70% of all non-domestic consumers in Northern Ireland.

For the remaining 30%, electricity prices were among the highest in Europe.

Commenting on the publication of the report, Utility Regulator Chief Executive Shane Lynch said: "Energy prices are the subject of much debate in Northern Ireland and indeed throughout Europe. This is understandable, as these prices impact on important social and economic issues within every jurisdiction, for example on fuel poverty and industrial competitiveness.

"Several stakeholders have asked us about comparisons between electricity prices in Northern Ireland and other parts of Europe.  It is important that there is transparency on energy pricing and we therefore made a commitment to collate and publish such data. The data will also be a useful basis for framing discussion around factors affecting energy prices going forward.

"Clearly aspects of the data require some discussion, not least of which is the finding which shows that larger electricity users are paying nearly the highest prices in Europe.  We suggest that market size/economy of scale issues, fuel mix at the wholesale level, energy policy (including taxation) and regulation may be drivers of regional price variances and more work needs done to better understand these impacts in our market.

"We will take forward work during 2013-14 on this issue. We plan to commence a review of the effectiveness of competition in the I&C market.  Alongside this we will continue to robustly scrutinise network price controls whilst ensuring that necessary investment can be efficiently financed.  Finally, we will work to integrate the wholesale market with Western Europe by 2016.  Feedback from stakeholders on the data we have published today will also inform our further analysis of the bill components and the allocation of costs across regulated network tariffs.

"We also recognise that regulators, policy makers, consumer representatives and the electricity industry especially all have some responsibility in helping to explain the pricing picture.  For that reason we would like to facilitate a debate among interested stakeholders on this very important aspect of our energy policy and regulation. We therefore would welcome views on the paper by 24 May 2013."

(IT)