Report Sparks Hopes Of Electricity Price Cuts

Comments by the NI Utility Regulator that electricity prices may be reduced in January have sparked hopes of a New Year financial fillip for householders here.

Iain Osbourne said he was "hopeful" of making a decision before Christmas. He was commenting after a review on foot of a 14% price rise in July and a 33% increase in October.

Northern Ireland Energy Minister Arlene Foster has already welcomed the report, by Douglas McIldoon, former Chairman of the Northern Ireland Authority for Energy Regulation, after his independent review of the price setting process on which the current regulator's new comments are based.

That independent review said that while the price hikes were "justified" they were also "unsatisfactory".

Arlene Foster said: "I am pleased that Mr McIldoon found no anomalies or short comings within the process by which the price increase was managed, and I am satisfied with his conclusion."

In addition to his findings regarding the recent tariff setting process, Mr McIldoon's report also looked at a number of wider issues regarding the structure and development of the electricity supply industry within Northern Ireland.

Also commenting, Sinn Fein MLA and Deputy Chair of the Stormont Committee for Enterprise, Trade and Investment, Jennifer McCann has called on the Utility Regulator to go one better and to "lower electricity prices immediately".

"This review was carried out following the concerns raised over the 33% rise in electricity prices several months ago.

"The review clearly states that we are paying too much for our electricity.

"It goes on to say that fuel poverty cannot be tackled through the current structure of the electricity market, and that the prices are higher here because of the way electricity is bought by suppliers and through the lack of contracts between suppliers and generators.

"It is clear that there needs to be fundamental changes to the overall energy policy if we are to keep prices low and tackle fuel poverty. The way in which the current market mechanisms operate will keep prices high for the customer.

"I believe this review gives us the opportunity to examine all areas including the development of the single electricity market based on an all island approach, investment in renewables, and how the procurement and generation of electricity is secured.

"However what is crucial is that electricity customers begin to feel the benefits of the current fall in wholesale gas and oil prices. In light of this report I am now calling on the Regulator to ensure electricity prices come down with immediate effect."

(BMcC)