09/07/2003

Consumer Council calls for action on energy costs

The General Consumer Council today called for action to cut energy costs in the province following the publication of consultation on the government’s New Energy Strategy for Northern Ireland.

The Chairman of the Consumer Council, Steve Costello, said that the single biggest issue facing energy consumers was the "high price" of services.

He added: "It hits poorer households because they have to spend more of their income on energy, pushes up costs for industry and commerce, and damages the overall economy.

“The consultation provides information about the energy market in Northern Ireland, but it falls short on concrete proposals for action. In fact, we believe that some of the options suggested in the paper may lead to higher energy costs. Customers would find this unacceptable and difficult to understand.”

Mr Costello also said the council was disappointed with the limited reference made to the oil industry.

“Oil consumers deserve more protection than they presently receive. The significance that over 60% of households in Northern Ireland use oil as their primary home heating fuel is ignored. The energy strategy is an ideal opportunity to tackle prices, standards of installation, lack of industry regulation and the current inadequacy of oil storage facilities in Northern Ireland."

The council claims that the proposed strategy provided little evidence of how creating an all-island energy market would benefit consumers. The greatest gains for electricity consumers will be achieved through resolving the current generation contracts and the council called on the department to spell out the options for bringing down energy costs.

Mr Costello added: “The energy strategy for Northern Ireland should not simply impose a system designed for Great Britain, the Republic of Ireland or other European markets. We can’t operate in isolation but we must ensure that the strategy meets Northern Ireland’s needs.”

The General Consumer Council is the principal organisation representing the interests of energy consumers in Northern Ireland and has particular responsibilities for gas and electricity consumers.

(SP)

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