Power price drop early Christmas gift in North

A reduction in electricity prices for hard-pressed consumers in the North will be announced before Christmas, it was revealed today.

Prices were increased by 33.3% in the autumn after a hike of 14% in July.

Amid tumbling global oil prices, Britain's Utility Regulator, Iain Osborne, set up a price review last month and confirmed he would have good news for consumers before they hang up their stockings.

“We will make the announcement before Christmas, it is too early to say how much it will go down, but the wholesale market is quite sharply down.”

Costs have been hedged to a considerable degree and the price drop will not reflect the full fall in the price of crude oil. However, there is room for manoeuvre, he said.

The reduced price would be effective from early in the new year, he said. “If it is to be worth doing I think we need to get it to people in early January.”

However, Mr Osborne stressed: “Doing a review mid-way through the winter given the volatility in the market implies some uncertainty in this.

“But we have brought this forward because this is such a difficult winter for consumers – we are just trying to get what we can to people as soon as we can.”