Energy firm Power NI has announced a price cut - but says it will be cancelled out by a reduction in the Government’s Energy Price Guarantee.
The company’s domestic electricity tariff will be reduced by 14.2% from Janunary 1, but both they and the Consumer Council say that with a reduction in the EPG rate people’s bills will remain the same.
The Energy Price Guarantee, the Government states, “protects customers from increases in energy costs by limiting the amount suppliers can charge per unit of energy used”.
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They add: “It currently brings a typical household energy bill in Great Britain for dual-fuel gas and electricity down to around £2,500 per year, and in Northern Ireland to around £1,950 per year.”
However, from January the intervention is being cut meaning the discount will be reduced to 13.6pence per kilowatt hour down from 19.9p/kWh.
In their statement, Power NI said that “residential customers will not face any further increases to the price they pay for electricity this winter”.
They added: “Due to a recent reduction in wholesale market costs, the UK Government’s Energy Price Guarantee support scheme (EPG) will continue, but with an adjusted level of discount specific to Northern Ireland, for the period from 1 January 2023 to 31 March 2023.
“In calculating the rate for Northern Ireland, the Government has adjusted the discount rate from the previous two months (November 2022 to December 2022) to take account of the changes from January 2023 across the regulated tariffs in Northern Ireland. Following a review process with the Utility Regulator, the underlying Power NI residential price has decreased by 14.2%.
“This alongside the continuation of the adjusted EPG discount, has ensured that Power NI residential customers will not see any changes to the price they pay for electricity this winter.”
The Consumer Council says the news will affect over 473,000 households. They added that the changes to the tariff and EPG “means that the typical credit bill will remain the same amount as it currently does, around £847 a year, and customers with a prepayment meter will also see their costs remain the same at around £826 a year”.
Raymond Gormley, Head of Energy Policy at the Consumer Council, said: “It is welcome news that Power NI have announced a much-needed price reduction for its customers, however, the fact that it is happening at the same time as changes are being made to the EPG Scheme means that consumers won’t see a difference in their bills.
“We know that even with the Power NI tariff reduction and the EPG being rolled out, that so many consumers in Northern Ireland are still really worried about their bills. 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: “We work hard to keep our prices as low as possible during these challenging times and we welcome the continued support that the government’s Energy Price Guarantee (EPG) scheme is providing to domestic customers in Northern Ireland. The support scheme has been updated with a Northern Ireland specific discount for the period between 1 January 2023 and 31 March 2023, which will ensure that our customers will see no changes in their billed tariff this winter.
“We value all our customers and remain committed to helping those who continue to be impacted by the cumulative rise in the cost of living. 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 other key stakeholders, to ensure the most vulnerable in our society and those who are struggling get the help they need.”
Power NI says it “helps customers to save money through a range of discounted payment schemes and services”.
They added: “Bill paying customers can save up to £60 a year through online billing and monthly direct debit. Pay as you go Keypad customers get uncapped discounts, as well as free electricity when topping up £50 or more using the free Power NI app or via the website. Power NI customers can top up from the comfort of their own home, with our free app, online or by calling our self-service 24/7 telephone service on 03457 455 455.”
Details of all help can be found at powerni.co.uk/energy-bill-support.
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