Gas outfit Firmus has announced a price increase of one third.
The 33.57% hike in bills will apply to the company’s ‘Ten Towns Network’ area and take affect from February 24.
As per a raft of increases in energy tariffs announced over recent months, Firmus is blaming “continued increases in wholesale gas prices”. However the firm also cited ongoing tensions in Ukraine as a factor.
Today’s tariff change will mean an extra £5.95 per week on to the average household bill, the firm says.
David Dobbin, Chairman of firmus energy, said: “Unfortunately, due to the sustained high prices in wholesale gas markets we have had no option but to make a further increase in our gas tariff.
“Very low gas stocks; reduced Russian supplies and concerns about the Ukraine situation are all combining to keep European gas prices high. The market crisis has been well publicised, and markets look increasingly like they are going to remain high 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. Regrettably, we, in Northern Ireland, are at the mercy of the global wholesale gas market and are unable to influence these prices.”
Utility Regulator John French said the increase will amount to the average annual household gas bill increasing to £1,293 per year. The rise per year is around £325, the Consumer Council added.
Mr French warned there is little light at the end of the tunnel.
He added: “The unparalleled increases in the cost of wholesale energy at a global level have persisted and continue to impact on supplier costs. This has been exacerbated by the overall volatility within the market, with significant price movements occurring on a daily basis.
“Unfortunately there appears to be no end in sight during 2022 for significantly above trend wholesale prices. 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.
“I have 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.”
It is understood that around 59,000 domestic customers will be affected by the rise. The Ten Towns Network area includes Antrim, Armagh, Ballymena, Ballymoney, Banbridge, Coleraine, Craigavon (including Lurgan and Portadown), Limavady, Derry/Londonderry, Newry, and more than 25 other towns and villages in the surrounding areas.
The Consumer Council said: “With the cost of energy continuing to increase, the Consumer Council is concerned about a potential rise in fuel poverty as many families may struggle to find the extra money they will now need to pay for heating.”
The Council added that consumers can also get in touch with them for independent advice by calling Freephone 0800 121 6022 or by emailing contact@consumercouncil.org.uk.
