Utilities regulator warns of energy bill price hike

TODAY, Utility Regulator chief executive, John French, signalled that electricity and gas consumers in the North will face further significant increases to their energy bills this winter that could be as much as 50 per-cent.

The Utility Regulator had said this is due to unparalleled rises in global wholesale gas markets that has never been experienced before.   

Utility Regulator chief executive, John French said, “In August this year, I warned consumers that we were experiencing record increases in the global price of wholesale energy.

“This resulted in Firmus Energy and SSE Airtricity Gas Supply increasing their regulated tariffs by 35.15 per-cent and 21.8 per-cent respectively from October 1, 2021.

“Unfortunately, there has been a rapid and sustained acceleration of wholesale gas prices since then. When we agreed to Firmus Energy and SSE Airtricity Gas Supply’s new regulated tariff at the end of August, the wholesale cost of natural gas was £1.15 per term – a record high.

“However, with continuing supply constraints, mainly from reduced gas supplies from Russia, wholesale prices peaked at a new record high of nearly £4.10 per term in early October. In the last week, the wholesale price has reduced slightly to around £2.40 per term, but this is still a 109 per-cent increase from the end of August.

“With such a volatile market, it is really difficult to predict how long gas prices will stay high. But as a result of these record global prices, we do expect to see a significant upward pressure on bills until summer 2022.

“As wholesale costs make up around half of both our gas and electricity bills, I unfortunately envisage further significant increases on both household and business energy bills in the coming weeks.”

The Utility Regulator said that they were working with the Department for the Economy and the Department for Communities and the Consumer to try and alleviate any burdens a price rise would have on a consumer.