Power NI customers are to see a 14% increase in their electricity bills despite the company reducing its unit price.
From April 1, customers will see a 3.72p increase per unit in their energy bills primarily due to the reduced support that will be provided by the UK Government's Energy Price Guarantee scheme.
Power NI has said that due to a fall in wholesale market costs, it would be reducing its price per unit by 6.61p, however due to the EPG scheme reducing support by 10.33p per unit, customers' bills will increase in the coming months.
As a result, the typical standard Power NI credit bill will increase by around £119 and Power NI customers with a prepayment meter will also see their costs increase by £116 a year.
Over 474,000 will see their energy bill increase from April 1.
Peter McClenaghan, Director of Infrastructure and Sustainability at the Consumer Council said: “It is welcome news that wholesale energy prices are coming down allowing Power NI to announce a second price reduction for its customers so far in 2023. However, as this is happening at the same time as changes to the level of the Energy Price Guarantee, consumers’ bills will increase.
"This strange situation is happening because the additional back-dated EPG support consumers here were receiving is ending. The additional support had been provided because the EPG was introduced later in Northern Ireland.
"Due to the change in EPG, it is likely that the other four unregulated electricity suppliers in Northern Ireland will increase their prices, accordingly, meaning that consumers should consider reviewing their tariff in the coming months to ensure they are on the best deal for their needs, as money can be saved by switching supplier, tariff, or billing method.
"We know from our pulse survey that most consumers in Northern Ireland are still really worried about home energy prices. We urge anyone who is struggling to pay their energy bills or top-up their meters to contact their supplier directly for help and support.”
William Steele, Director, Power NI Customer Solutions, said: “A decrease in wholesale energy prices has enabled Power NI to again reduce its underlying unit price. However, the recent change by the UK Government to its Energy Price Guarantee means that a lower level of scheme discount will be applied to all electricity bills. Unfortunately, this means customers will see a 14% increase in prices.
He added: “We understand that some customers may be worried about paying bills. We would ask for any concerned customers to contact us directly and we will help you.
“As well as working directly with customers, we will continue to work closely with our charity partners and other key stakeholders, to ensure the most vulnerable in our society and those who are struggling get the help they need.”
READ MORE:
- Venture capital flocks to Northern Ireland high growth firms
-
Budget 23: Northern Ireland business welcomes investment incentives but tax hike weighs
-
Ulster Bank PMI: Northern Ireland business activity picks up as exports grow
Northern Ireland could add 33,000 jobs in a decade if it can woo overseas investors
For all the latest news, visit the Business Live Northern Ireland homepage here. To sign up to our FREE newsletters, see here.
