Power NI customers will see a 10% reduction in their energy bills from November, it has been announced.
The energy supplier is set to increase its tariff by 60.5% from November 1, impacting over 471,000 households. However, this significant increase will be offset by the UK government Energy Price Guarantee Scheme that will take effect on the same date.
This means consumer bills will be around 10% cheaper than current Power NI tariffs, equating to a saving of £98 per year for the average customer.
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Power NI said their tariff change follows a review process with the Utility Regulator which concluded a tariff increase was necessary. Regulated suppliers in Northern Ireland, such as Power NI, are required to seek approval from the Utility Regulator before changing their tariffs.
John French, Chief Executive of the Utility Regulator said the tariff increase was due to "skyrocketing wholesale prices." He added: "The increase also reflects the fact that the company has not changed its tariffs since July 2022, and had built up a large under-recovery of revenue at a time of ongoing volatility in wholesale prices.
“However, this is the first regulated tariff review in the context of the UK Government’s energy price guarantee scheme. This scheme reduces the amount consumers will be charged per unit of gas or electricity for two years, effective from 1 November 2022. This significant support by the UK Government will mean that Power NI’s customers will actually see a reduction in their bills from 1 November.
“This means that, from 1 November, when the new tariff takes effect, the Power NI average domestic credit customer (with energy price guarantee – EPG - applied) will pay £847 a year, compared to GB average standard tariff (£1,369 per year) and the RoI average standard tariff (£1,634 per year).
"This means that the typical Power NI customer’s bill will be 38% lower than the equivalent in Great Britain and 48% lower than the equivalent in the Republic of Ireland."
William Steele, Director, Power NI Customer Solutions, said: "We work hard to keep our prices as low as possible and in these challenging times, despite continued upward pressure on energy prices we have not increased our unit rate for residential customers since July 2022.”
“Although we now must substantially increase our underlying price to reflect the current market, the implementation of the EPG will mean our customers will see a reduction in their billed tariff level of 10%.”
“Further support has also been announced for residential customers and we are working with the UK Government and Northern Ireland Utility Regulator to apply the Energy Bill Support Scheme (EBSS) £400 credit to our customers’ electricity accounts as soon as possible.”
“We value all our customers, and we remain committed to helping those who are being impacted by the cumulative rise in the cost of living and I would ask, for any customers who are worried about paying a bill, please get in contact and we will help you.
“As well as working directly with customers, we will continue to work closely with our charity partners and government, assisting in helping the most vulnerable in our society and those who are struggling.”
Peter McClenaghan, Director of Infrastructure and Sustainability at the Consumer Council said: “Thankfully, the Government’s Energy Price Guarantee has helped avoid what would have otherwise been a very large price increase for Power NI customers on 1 November 2022. Instead, Power NI customers will experience a welcome reduction in their bills as will all other domestic electricity consumers.
"Northern Ireland has five different electricity suppliers, all offering different rates, payment options and billing methods. Switching between suppliers or making sure you are on the best deal your current supplier provides could help reduce your energy bills.
"Even when the Energy Price Guarantee is in place, energy bills will be higher than normal and some consumers in Northern Ireland could save hundreds of pounds per year simply by switching supplier.
"To make the switching process easier the Consumer Council provide a free, independent, energy price comparison tool on our website which compares every energy tariff available in Northern Ireland to help you get the best deal.
"The Energy Price Guarantee is a discount applied to the price of a unit of energy, not a price cap. This means your exact bill will still depend on how much energy you use. Therefore, we encourage everyone to reduce your energy use if you can and aren’t already doing so.”
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