Northern Ireland’s largest natural gas provider, SSE, is set to reduce prices by 22.8% from April with a typical household saving £320.47 annually. The price reduction follows a sharp decline in wholesale natural gas since Russia’s invasion of Ukraine in February 2022, which is now feeding through to consumer prices. Power NI, NI’s primary electricity supplier, will also be cutting prices by 6.3% (2p per unit) from the beginning of April, reflecting a fall in wholesale costs and saving customers an average of £64 per year. Other electricity suppliers have also been lowering prices as wholesale costs continue to drop.
SSE’s gas prices are regulated by the NI Utility Regulator, and its general manager in NI, Andrew Greer, welcomed the price reduction. He recognises that energy costs are a significant concern for many households and businesses, and high wholesale market volatility has impacted them, so a price reduction will undoubtedly provide some welcome relief. Power NI’s prices are also regulated by the same regulator, and its customer solutions director, William Steele, said this was the fourth consecutive tariff reduction, reflecting the company’s commitment to passing on savings to its customers.
The Utility Regulator welcomed the decrease in energy bills for consumers but acknowledged that many households and businesses still face challenges amid the cost-of-living crisis. It is making efforts to provide assistance to those struggling to pay their electricity or gas bills, a concern shared by Colin Broomfield, the regulator’s director of markets. It is worth noting that we have seen a trend of UK energy suppliers reducing tariffs in 2022 as wholesale prices continue to drop across the board, providing welcome relief to consumers.
In conclusion, the reduction in gas and electricity prices by SSE and Power NI respectively is good news for consumers in Northern Ireland, who are facing challenging economic conditions as electricity and gas prices have risen across the UK and abroad. Wholesale market volatility over the past several months has affected households across Northern Ireland, making energy costs a significant concern, but with these updates, they can welcome relief
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