Gas prices to rise by up to 20% in the North

Gas users in Northern Ireland were furious today at an expected price rise of up to 20%.

Phoenix Natural Gas is due to confirm the price rise – which will be on top of a 10.8% rise just five months ago.

The UK General Consumer Council branded the rise “staggering” and said it was a “bitter blow” for consumers.

Angry politicians hit out at the gas supplier. Former Northern Ireland enterprise minister Sir Reg Empey of the Ulster Unionist Party condemned it as “outrageous” and sought an immediate meeting with Trade and Industry Minister Ian Pearson.

The Consumer Council said the combined impact of the two rises would mean average bills increasing by up to £170 (€252) a year.

Chief executive Eleanor Gill said: “The second hike in gas bills in the last six months comes as a very nasty and unexpected surprise to Phoenix Natural Gas’s 62,000 domestic customers.”

She said both the council and customers had been “kept in the dark” about a pricing issue which had been going on for the past year.

“Greater openness and transparency is required,” she insisted.

She said that while the Council understood gas bills were subject to worldwide gas costs, it had real concerns “that the sheer scale of this increase will undermine consumer confidence in the gas industry at a time when we are all committed to encouraging its expansion.”

Ms Gill called for an investigation by the regulator OFREG and the UK Department of Enterprise, Trade and Investment.

She asked whether the gas supplier to Phoenix, Centrica, could be challenged to justify its decision to put up charges.

Natural gas is a developing market in Northern Ireland and the UK Consumer Council urged Phoenix to agree a deal with the regulator to restore much needed consumer confidence in gas.

“This is the least the consumer deserves in a market place where there is only one gas supplier and they cannot shop around for a better deal,” said Ms Gill.

Sir Reg Empey said: “The whole situation is totally outrageous, particularly for domestic customers and small business customers who are the ones, I understand, who will be affected.

“On top of the 10% increase last October, most consumers will be reeling.”

Ian Paisley Jnr of the Democratic Unionist Party branded the rise “unjustifiable profiteering“.

And SDLP deputy leader Alasdair McDonnell said the increase must be resisted.

“There are something like 22,000 Housing Executive households who have installed natural gas and this is going to stick at least £1 a week on the smallest bill and £2-£3 a week on the bigger bills.

“I think there is a case to pursue here and I think we have to pursue it to the ends of the earth.”