Northern Executive urged to defuse energy crisis

The Northern Executive should help defuse an energy crisis which has seen prices rise by 14%, an electricity boss said today.

Extraordinary circumstances demanded urgent intervention to protect the most vulnerable from soaring bills, NIE Energy admitted.

Stephen McCully was giving evidence to the Assembly’s enterprise, trade and investment committee in Belfast.

“We can’t tackle the real pressures coming through from this of very high prices on the most vulnerable in society. We do need some form of direct support from the government,” he said.

“These are extraordinary times and it requires extraordinary action.

“We will work constructively with government.”

NIE Energy plans another increase of around 15% in the autumn, dependent on wholesale energy prices in coming weeks. It announced yesterday that bills would rise by 14% from the start of July.

Coal, gas and oil prices have risen by 85% since the last price review around a year ago.

Mr McCully said they were encouraging better uptake of benefits by the most vulnerable but added tight profit margins made it difficult to take further action without government involvement.

“We do seek to purchase economically and we do seek to hedge economically so we are not exposing customers to the volatility of a market,” he added.

Democratic Unionist Assembly member Robin Newton said it was up to NIE to advise where action could be taken.

“The government isn’t going to react unless there are specific proposals coming forward,” he said.

“If we recognise the fuel poverty situation then there has to be something coming forward to try to alleviate that situation.”

Around 42% of NIE users are not claiming the full benefit to which they are entitled, losing £36 (€46) a week. The company has been giving advice on saving energy and provides discounts to those who pay via keypad meters or direct debit.

Mr Newton added: “As a monopoly organisation... it would stand you in good stead if some gesture is made quickly.

“That would help the problems that we all recognise are being faced by the most vulnerable over and above the strategies that you have in place.”

The Consumer Council has called for extra aid to help poorer families this winter. Around a third of households pay more than 10% of their income on fuel, higher than other parts of the UK.

The vast majority of the North’s electricity is generated from coal and oil and prices on world markets are continuing to increase.

NIE Energy supplies 738,000 domestic and 48,000 business customers.