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31/01/2006
Phoenix monopoly ends in Belfast and Larne
The Government has proposed plans to open the gas supply market to greater competition.
Ending the monopoly of Phoenix Natural Gas Domestic and non-domestic customers, in the Greater Belfast and Larne areas, Energy Minister, Angela Smith, announced the move following a Department of Enterprise, Trade and Investment’s public consultation last year and subsequent agreement with the Northern Ireland Authority for Energy Regulation (NIAER).
The move means that Phoenix Natural Gas will no longer have an exclusive licence to supply gas in these areas.
The Minister said: “While it was important that Phoenix had an exclusive licence to facilitate the development of a fledgling natural gas market in Greater Belfast, now that the market is more established, the introduction of competition is vital to strengthen and further develop it.
“Competition is good for Northern Ireland consumers; it provides choice, better customer service and, based on experience elsewhere, it can lower costs, something my Department is committed to.
“In addition to the introduction of competition in the Phoenix area, the NIAER is currently discussing a new licence with Phoenix, aimed at bringing greater clarity and certainty to the gas market which should result in less volatile prices for consumers, and help bring stability to the Northern Ireland gas industry.
“The global rise in oil and gas prices has increased the focus on the need for energy efficiency and alternative energy sources. In addition to investments of over £9 million in the past two years to support energy efficiency schemes, Government intends that the new Environment and Renewable Energy Fund will enable us to invest in the long term sustainability of the Northern Ireland energy system.
“By contributing to the reduction of energy costs, it will aid industrial competitiveness and help alleviate fuel poverty.”
The introduction of competition will be phased, with the entire non-domestic gas supply market open to competition by 1 July 2006 and the domestic market fully opened from 1 January 2007.
(SP)
Ending the monopoly of Phoenix Natural Gas Domestic and non-domestic customers, in the Greater Belfast and Larne areas, Energy Minister, Angela Smith, announced the move following a Department of Enterprise, Trade and Investment’s public consultation last year and subsequent agreement with the Northern Ireland Authority for Energy Regulation (NIAER).
The move means that Phoenix Natural Gas will no longer have an exclusive licence to supply gas in these areas.
The Minister said: “While it was important that Phoenix had an exclusive licence to facilitate the development of a fledgling natural gas market in Greater Belfast, now that the market is more established, the introduction of competition is vital to strengthen and further develop it.
“Competition is good for Northern Ireland consumers; it provides choice, better customer service and, based on experience elsewhere, it can lower costs, something my Department is committed to.
“In addition to the introduction of competition in the Phoenix area, the NIAER is currently discussing a new licence with Phoenix, aimed at bringing greater clarity and certainty to the gas market which should result in less volatile prices for consumers, and help bring stability to the Northern Ireland gas industry.
“The global rise in oil and gas prices has increased the focus on the need for energy efficiency and alternative energy sources. In addition to investments of over £9 million in the past two years to support energy efficiency schemes, Government intends that the new Environment and Renewable Energy Fund will enable us to invest in the long term sustainability of the Northern Ireland energy system.
“By contributing to the reduction of energy costs, it will aid industrial competitiveness and help alleviate fuel poverty.”
The introduction of competition will be phased, with the entire non-domestic gas supply market open to competition by 1 July 2006 and the domestic market fully opened from 1 January 2007.
(SP)
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Northern Ireland WeatherThis Evening and Tonight:It will be cloudy. Also mainly dry at first this evening but then occasional outbreaks of rain developing overnight. Light southwest winds, and staying mild. Minimum temperature 9 °C.
