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Northern Ireland’s leading natural gas supplier, SSE Airtricity, plans to raise its prices by nearly 19% starting from 1 October, affecting approximately 200,000 domestic and small business customers. This increase means an average household within the greater Belfast and west gas network areas will see their annual gas bill rise by nearly £172.
The company attributes the price hike to “unprecedented levels of volatility in global energy markets and higher wholesale gas prices.” Notably, wholesale gas prices in the UK have almost doubled since the conflict began between the US, Israel, and Iran. Colin Broomfield from the Utility Regulator acknowledged that the rise in costs would be “difficult news for many households and small businesses, particularly at a time when wider cost pressures remain a concern.”
Small business owners are already feeling the strain caused by the surge in energy costs. Glenn Davis, co-owner of The Upper Crust restaurant in Larne, described the financial pressure caused by rising energy expenses. He shared, “We are a daytime restaurant running six days a week and our gas bill is already sitting at about £400.” Coupled with his £500 weekly electricity bill, he noted, “It is a tough environment, I’m in the trade 30 years and this is as tough as it’s been.” Davis emphasized that these increases are adding considerable pressure on small and high street businesses in general.
For individuals, the impact is also significant. Isobel Russell, a resident of Larne, expressed concerns about the rising prices, saying they place “a lot of pressure” on her finances, especially as she lives alone and her husband is in a care home. She commented, “I have to put most of his money into the care home, which doesn’t leave me with a lot. But I still have to pay what everybody else is paying for my energy costs.” Russell suggested more drilling in the North Sea and increased support from Stormont for those struggling financially, noting, “They’re not giving us much support at the minute are they? I think they could do a lot more.”
To provide some relief, a Stormont scheme will offer eligible households a £100 voucher towards home heating oil costs, opening for applications next month. Additionally, a separate initiative will grant all households around £50 off their electricity bills in October. According to Broomfield, the fundamental reason behind the gas price surge is the “sustained rise” in wholesale gas costs linked to the ongoing Middle Eastern conflict. He remarked, “In recent weeks, we have seen the wholesale price of gas reaching 169 pence per therm. This is twice as high as pre-conflict prices.”
Raymond Gormley, head of energy policy at the Consumer Council for Northern Ireland, described a 19.2% price increase as “a significant amount.” He pointed out that consumers are already grappling with earlier increases in electricity prices and elevated oil prices. Gormley explained, “We knew SSE didn’t put their prices up during the summer, so we knew this was going to be a big number and it comes in around where we would have expected.” He highlighted the conflict in the Middle East as a major factor, adding, “At the end of the day, before the conflict in Iran, gas prices were about 80p a therm and it is now more than double that, so we knew it was going to be a big number. It didn’t come as a surprise to us, but it will be a shock to consumers.”
Gormley further noted the importance of the region in global energy production. “That area is a major oil and gas producer, so when those ships are being curtailed in the Strait of Hormuz, they are not getting out to their destinations. That means everyone is feeling the pinch and everyone else is competing for oil and gas.” Comparing prices across the UK and the Republic of Ireland, he said Northern Ireland’s gas prices are about £60 more expensive than the UK’s average but still several hundred pounds cheaper than in the Republic of Ireland
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