Reminder to Northern Ireland consumers about the Ofgem price cap
The Ofgem price cap to be announced today (25 May 2023) will not apply to Northern Ireland. Consumer Council Director of Infrastructure and Sustainability, Peter McClenaghan explains the differences between the energy markets in Great Britain and Northern Ireland and what consumers here should expect in the coming months.
Consumer Council Director of Infrastructure and Sustainability, Peter McClenaghan explains the differences between the energy markets in Great Britain and Northern Ireland and what consumers here should expect in the coming months.
Peter said:
“The Ofgem cap being announced today does not apply in Northern Ireland as we have separate electricity and gas markets overseen by our Utility Regulator.
Instead of a price cap we have a tariff review process. This requires the largest supplier in each network area to show the Utility Regulator, the Consumer Council, and the Department for the Economy that they are setting fair prices based on the price of wholesale energy. This tariff then acts as a price to beat for other suppliers.
The Northern Ireland regime has distinct benefits which include clarity for consumers as to the profit margin suppliers are permitted; 2% for regulated gas suppliers and 2.2% for Power NI.
It has also meant that prices have been lower in Northern Ireland than in Great Britain for much of the last year.
Looking to the future, Peter continued:
“The regulated tariffs of Power NI and SSE Airtricity Gas (Greater Belfast area) are currently under review and price changes are expected to be announced in the next few weeks. After the price announcements are made we encourage consumers to visit our free online Energy Price Comparison Tool to check that they are on the best tariff for their needs.
The Consumer Council is engaging with Government and stakeholders about help for Northern Ireland consumers next winter because we know prices will remain higher than average and many consumers are struggling to pay their bills.”
Peter said:
“The Ofgem cap being announced today does not apply in Northern Ireland as we have separate electricity and gas markets overseen by our Utility Regulator.
Instead of a price cap we have a tariff review process. This requires the largest supplier in each network area to show the Utility Regulator, the Consumer Council, and the Department for the Economy that they are setting fair prices based on the price of wholesale energy. This tariff then acts as a price to beat for other suppliers.
The Northern Ireland regime has distinct benefits which include clarity for consumers as to the profit margin suppliers are permitted; 2% for regulated gas suppliers and 2.2% for Power NI.
It has also meant that prices have been lower in Northern Ireland than in Great Britain for much of the last year.
Looking to the future, Peter continued:
“The regulated tariffs of Power NI and SSE Airtricity Gas (Greater Belfast area) are currently under review and price changes are expected to be announced in the next few weeks. After the price announcements are made we encourage consumers to visit our free online Energy Price Comparison Tool to check that they are on the best tariff for their needs.
The Consumer Council is engaging with Government and stakeholders about help for Northern Ireland consumers next winter because we know prices will remain higher than average and many consumers are struggling to pay their bills.”
- Energy