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Belfast Live
Belfast Live
National
Brendan Hughes

Cost of living: Energy bill support package for Northern Ireland - what you need to know

Household gas and electricity bills in Northern Ireland will be capped from November under UK government plans, it was announced on Wednesday.

Home heating oil customers in Northern Ireland will receive a payment of £100 to help with rising energy costs.

The Government also announced plans to introduce a cap on wholesale energy bills for businesses.

Read more: SDLP proposes 1,000 litres of oil for every home in Northern Ireland

There has been uncertainty over how Northern Ireland would receive support due to the region having a separate energy market from Great Britain.

Concerns have also been raised over the potential impact of the current lack of a fully functioning devolved government at Stormont.

Here is a summary of what you need to know about the major announcements.

Price caps for household gas and electricity

Under the scheme, energy suppliers in Northern Ireland will reduce bills by up to 17p/kWh for electricity and 4.2p/kWh for gas.

The Government said there is no need for householders to take any action to receive this support.

When the cap was announced for the rest of the UK, the Government said it meant a typical household will pay no more than £2,500 a year on their energy bills for the next two years.

It is expected to save the typical household £1,000 a year based on current energy prices from October.

The scheme, called the Energy Price Guarantee, is due to take effect in Great Britain from October 1.

Northern Ireland households will have to wait until November, but the Government said they will see the same benefit overall by backdating support.

Home heating oil

In Northern Ireland, home heating oil is used by two-thirds of households - a significantly larger proportion compared to the around 5% across the whole of the UK.

The Government has said home heating oil customers in Northern Ireland will receive a one-off payment of £100 to help with rising energy costs.

The smaller level of support for oil heating reflects how gas prices have risen more sharply than oil in the last year.

The Consumer Council in Northern Ireland suggests heating oil currently costs more than £520 for 500 litres, compared to around £220 a year ago.

The £100 will be delivered as a top-up to the £400 Energy Bills Support payment which is going to all UK households.

However, there is no firm timescale on when this £400 payment will be made available in Northern Ireland.

The uncertainty has stemmed from the region having a separate energy market from Great Britain and there is currently no fully functioning devolved government at Stormont.

The SDLP, which has called for a voucher scheme for 1,000 litres of oil for every home in Northern Ireland which relies on oil heating, described the Government's proposed payment as an "insult".

SDLP leader Colum Eastwood said: "They have no idea what real people are going through."

Businesses

The Government also announced plans to introduce a cap on wholesale energy bills for businesses in Great Britain from October, and said a parallel scheme will be established in Northern Ireland.

The Energy Bill Relief Scheme will see energy bills for businesses cut by around half their expected level this winter.

Under the scheme in Great Britain, wholesale prices are expected to be fixed for all non-domestic energy customers at £211 per MWh for electricity and £75 per MWh for gas for six months.

A comparable wholesale rate "recognising the different market fundamentals" will be "set shortly" for Northern Ireland, the Government said.

The scheme in Great Britain will last for six months for all firms from October 1, although it is not yet clear when this relief will be available in Northern Ireland.

Hospitals, schools, charities and other settings such as community halls and churches will also get help.

Business sectors in Northern Ireland called for "urgent clarity" on how the relief scheme will operate in the region.

Colin Neill, chief executive of Hospitality Ulster, said: “It is simply unacceptable that Northern Ireland businesses do not have any detail on how support will be provided.

“We need urgent clarity on how these measures will be carried forward.

“Thousands of businesses are on the brink, with many concerned how they will get through the winter."

Retail NI chief executive Glyn Roberts said: "Given the crippling financial difficulties that local independent retailers and other small businesses are experiencing, it is hugely disappointing that more clarity was not provided on the energy cap.

“We have been given no timelines on how the energy cap will apply to Northern Ireland business owners.

"This is unacceptable and our members deserve better."

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