North's regulator wants power price cuts passed on

International reductions in the price of electricity should be quickly passed to consumers in the North, the regulator said today.

Watchdog Iain Osborne highlighted the downward trend in underlying fuel costs as he launched a review of tariffs.

Bills have leaped by a third with wholesale prices spiking earlier this year.

“Because we exist to protect consumers we want to see electricity prices that are as low as possible.

“Our commitment to consumers is that cost reductions will feed through as fast or quicker than cost increases.

“However, there can be no guarantee at this point that this review will lead to lower electricity prices.”

Electricity bills rose by a third in October, adding almost £150 (€176) to the average bill. It followed a 14% increase in July.

Mr Osborne added: “We have been closely monitoring the changing situation on the wholesale energy market for some time.

“We have also discussed with NIE the potential impact of wholesale trends on consumers. We conclude that the time is now right to review electricity prices, and that this review should start immediately.”

Gas prices have also risen, with increases blamed on the cost of wholesale fuel.

Eleanor Gill, chief executive of the Consumer Council, said: “Consumers are struggling to keep warm and well and they must see cost reductions passed on quickly through lower bills at a time when every penny counts.

“While this news is welcome, we remain concerned about the underlying system that has resulted in a 52% price increase in our electricity since January this year.

“Consumers here are now left paying on average £114 (€134) more per year than those in GB.”

Economy Minister Arlene Foster said: “The downward trend in wholesale oil, coal, and gas prices over the past number of weeks has presented the utility regulator with a timely opportunity to review retail electricity prices in Northern Ireland with the potential for any savings to be passed on to hard pressed consumers.

“There is no guarantee that the review will result in a reduction in electricity prices, as NIE Energy has already bought a significant proportion of its energy requirements in advance, to help ensure price stability.

“However, I am confident that the regulator will act in the best interest of consumers and pass on any electricity price reductions as quickly as possible.”