Power NI has today, 16 March, announced that a review of its underlying residential unit price has resulted in a 6.61p per unit (16.2%) decrease. This is due to a fall in wholesale market costs.
However, the UK Government's Energy Price Guarantee (EPG) Scheme support will reduce by 10.33p per unit and this will result in overall tariffs increasing by 3.72p per unit or 14%.
The new residential electricity unit price will be effective from the 1st April 2023.
Power NI is the only domestic electricity supplier in Northern Ireland who is price-regulated, providing customers with an additional level of safeguarding, as tariffs are only adjusted through a Utility Regulatorvalidated formula. This is the second Power NI underlying tariff reduction in 2023.
The UK Government has announced it is reducing the level of Energy Price Guarantee (EPG) support given to all domestic customers in Northern Ireland.
William Steele, Director, Power NI Customer Solutions, said:
“A decrease in wholesale energy prices has enabled Power NI to again reduce its underlying unit price. However, the recent change by the UK Government to its Energy Price Guarantee means that a lower level of scheme discount will be applied to all electricity bills. Unfortunately, this means customers will see a 14% increase in prices.
William Steele continues:
“We understand that some customers may be worried about paying bills. We would ask for any concerned customers to contact us directly and we will help you.
“As well as working directly with customers, we will continue to work closely with our charity partners and other keystakeholders, to ensure the most vulnerable in our society and those who are struggling get the help they need.”
Commenting on Power NI’s tariff announcement, Kevin Shiels, interim Chief Executive at the Utility Regulator said:
“In January 2023, the Utility Regulator commenced a review process with Power NI of its regulated tariff for domestic electricity customers. This tariff review forms part of our regular scrutiny to make sure that consumer bills reflect the actual cost of providing electricity to homes in Northern Ireland.
“Power NI’s underlying costs have fallen, including their energy wholesale costs. However, whilst our review has resulted in a 16.2% decrease to Power NI’s underlying regulated tariff, the actual change customers will see from 1 April 2023 is an increase of 14%. This is due to a reduction in consumer financial support provided through the UK Government’s Energy Price Guarantee (EPG) scheme.
“The EPG scheme was brought in by the UK Government to help households with high energy prices over the winter. However, as the cost of wholesale energy is now reducing, so too is the level of support being provided by government. This means there will be a lower level of discount applied to all electricity and gas bills from 1 April 2023.
“The reduction to Power NI’s regulated tariff, which is a direct result of the recent falls in forward wholesale electricity prices, is welcome, but we understand that customers will be disappointed not to see this in their bills.
“When the new tariff takes effect on 1 April, Power NI’s average domestic credit customer (with the EPG discount applied) will pay £966 a year, compared to the GB electricity Price Cap of £1366 per year. This means that the typical Power NI domestic customer’s annual bill will be 29% lower than the equivalent in Great Britain and 42% less than RoI".
Mr Shiels added:
“We will continue to monitor Power NI’s regulated electricity tariff and ensure any further falls in costs are passed through to customers at the earliest opportunity.
“If you are worried about paying your energy bill, please contact your electricity or gas supplier in the first instance, to make them aware of your circumstances, and discuss the options available. In addition, there are a number of agencies who can provide free and independent advice to households, including Advice NI, Christians Against Poverty, the Consumer Council and Money and Pensions Service’s MoneyHelper.”
Power NI helps customers to save money through a range of discounted payment schemes and services. 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 (Mon-Fri, 9am-5pm).
Details of all help can be found at www.powerni.co.uk/energy-bill-support
Power NI is also continuing to work with customers and charity partners that are impacted by increasing costs, with financial supportto around 65 charity partners and community groups across Northern Ireland. That help has taken the form of Keypad top ups; aid to food banks and help for older people.