Northern Ireland’s largest provider of natural gas, SSE Airtricity, is to increase its prices by almost 19 per cent from October 1, affecting some 200,000 domestic and small business customers.
Households in the greater Belfast and west gas network can expect to pay an extra £172 annually due to the hike.
According to the Consumer Council for Northern Ireland, prices across the border still remain cheaper than in the Republic by “a few hundred pounds” annually.
SSE has cited “unprecedented levels of volatility in global energy markets and higher wholesale gas prices” as behind the price rise.
The Middle East conflict sent global oil prices soaring with the effective closure of the Strait of Hormuz – one of the world’s key water transport routes for oil, liquid natural gas and other essential commodities – reducing global supplies. Around 20 per cent of the world’s oil and liquefied natural gas normally passes through the waterway.
That wholesale increase is feeding into household prices, with Northern Ireland’s regulated gas tariff set to rise by 19.2 per cent.
The Utility Regulator in Northern Ireland said that before the Middle East conflict, wholesale gas was around 80p per therm. It subsequently rose to £1.70 per therm, an increase of more than 110 per cent.
It has since fallen to around £1.10 – £1.20 per therm, remaining roughly 38 to 50 per cent above the pre-conflict level.
Wholesale gas prices have surged on both sides of the border, with households in the Republic also suffering from the effects of wholesale shock. However, the Utility Regulator has said that even after the latest SSE increase, regulated energy tariffs in the North remain below tariffs in the Republic.
Electric Ireland increased its gas prices by 7.7 per cent from July 1, while Global increased its domestic gas prices by 11.8 per cent from July 20 – adding around €180 a year for affected customers.
Yuno Energy also hiked its electricity and gas charges from July, citing the impact of the conflict in Iran.
In the North, Firmus Energy previously announced a Ten Towns gas tariff increase of 15.65 per cent from July 1, adding on £132 a year to the typical household bull.
Head of energy policy at the Consumer Council for Northern Ireland, Raymond Gormley, said the 19.2% increase from SSE was “a significant amount”.
“We know electricity prices went up earlier this year and oil prices are high, so it will be a tough time for consumers,” said Mr Gormley.
“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.”
“We are about £60 more expensive than the rest of the UK, but about we are a few hundred pounds cheaper than the Republic of Ireland,” he added.