STRUGGLING Derry householders are facing another hike in their gas prices.
Firmus Energy has today announced that its tariffs are set to increase by 33.57% in the Ten Towns area later this month – adding £325 to the typical annual household bill.
The Ten Towns area includes Derry, Antrim, Armagh, Ballymena, Ballymoney, Banbridge, Coleraine, Craigavon (including Lurgan and Portadown), Limavady and Newry.
Around 59,000 domestic customers will be impacted in the area.
It is the FOURTH increase by the company since last spring 2021.
The increase, which will come into effect on February 24, will see the average annual household Firmus gas bill increase to £1,293 per year – an extra £5.95 per week.
The Consumer Council said it is concerned about a potential rise in fuel poverty as many families may struggle to find extra money for heating their homes
Firmus Energy chief executive, Dr David Dobbin, said they had “no option” but to introduce the price hike because of the high prices in wholesale gas markets and low gas stocks.
Utility Regulator chief executive, John French, said they received a submission from Firmus Energy in late December to undertake an ad-hoc review of their regulated Ten Towns tariff for domestic and small business consumers.
The review took place against a continuing increase in wholesale gas prices, which have risen significantly since Firmus Energy’s last tariff increase on December 3.
“We have now analysed and evaluated Firmus Energy’s submission and consulted with the Department for the Economy and the Consumer Council for Northern Ireland,” stated Mr French.
“This review has unfortunately concluded that a 33.57% increase from February 24, 2022, is needed to reflect the ongoing and exceptional price spikes that have been experienced in the global wholesale market.”
Mr French added that the “unparalleled increases” in the cost of wholesale energy at a global level have persisted and continue to impact supplier costs.
“Unfortunately, there appears to be no end in sight during 2022 for significantly above trend wholesale prices,” he said.
“However, if wholesale prices begin to reduce, our system of regulation in Northern Ireland allows us to act to make sure that reductions are fully passed onto consumers as quickly as possible.
“We are extremely aware of how this further energy price increase will affect consumers in Northern Ireland.
“We established a working group with the Department for the Economy, Department for Communities and the Consumer Council for Northern Ireland to actively explore what practical measures can be brought forward to alleviate the burden of these higher prices on consumers, this winter.
“I am pleased that the Northern Ireland Executive has provided significant funding to support local energy consumers.”
Mr French said he has written to all energy suppliers and reminded them of their regulatory obligations to avoid “customer disconnections” and consider other approaches to protecting customers in debt.
“We are also following this up with individual meetings with all energy suppliers, to ensure they are doing all they can to support their customers,” he continued.
“I would encourage anyone worried about paying for their energy bill to contact their supplier as soon as possible.
“There are also a number of agencies who can provide free and independent advice, including Advice NI, Money and Pensions Service and Christians Against Poverty.”
Dr Dobbin added that it is “increasingly likely” that the gas market crisis is going to remain for some time.
“As we have previously stated this is not just a Firmus issue, but a challenge faced by every local and national supplier of gas and electricity all of whom are affected by the huge upsurges which have taken place in wholesale gas and energy costs,” he said.
“Regrettably, we, in Northern Ireland, are at the mercy of the global wholesale gas market and are unable to influence these prices.
“We know this is another unwelcome increase which will have a disproportionate effect on those of our customers who are the most vulnerable.
“We have been providing financial support to the Department for Communities scheme to help those most in need and will continue to do so.
“If any of our customers feel that they require further support, they should contact us directly to see how we can help.”
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