19/03/2004

Pheonix Gas criticised for price hike

Phoenix Natural Gas has confirmed it is to raise prices in Northern Ireland by around 20%.

The gas giant blamed its supplier, British Gas Trading (BGT), for the increase which will see customers paying an extra £1.36 a week on average.

Commenting on the decision, Phoenix Business Development Director, Richard Rodgers, said he regretted the decision.

"We have been fighting hard in recent months, with the support of the Regulator, to avoid any gas cost increase by our gas supplier and, indeed, have made an application to the High Court," he said. "Up until now, Phoenix has borne the risk of any price increase that may result from the operation of the provision in the contract.

"It is our ongoing objective to provide the best possible and most cost effective service to our customers. Energy costs, including wholesale oil and gas prices, have risen to exceptionally high levels this winter and we would be hopeful that the future trend would point to falling prices.”

Today's decision was immediately condemned across the political spectrum. Former Enterprise Minister, Sir Reg Empey expressed his outrage and blamed BGT for the price hike.

“It is outrageous that BGT is attempting to make super-profits at expense of the most vulnerable people in Northern Ireland," the east Belfast MLA said. "The price hikes will further erode Northern Ireland’s competitiveness as a place to do business."

Sir Reg said he would be requesting a meeting with Enterprise Minister, Ian Pearson about the decision.

DUP Assembly Member Ian Paisley Jnr described the news as "unjustifiable profiteering" and said poverty levels in Northern Ireland would increase as a result.

The North Antrim MLA said he had contacted both the industry regulator Douglas McIldoon and Phoenix Gas boss Peter Dixon to ask whether a change in supplier was possible.

“The domestic gas user cannot be taken for granted in this way," Mr Paisley said. "The monopoly in supply to Northern Ireland has brought about this price increase. It is up to the government to ensure that this issue is addressed."

Sinn Féin Economy Spokesperson, Michelle Gildernew, described the news as "shocking and socially unacceptable" and issued a call for cross party pressure on NIO Minister Ian Pearson to step in and block the increase.

(MB)

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