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SEM Chart of the Week


NI electricity prices are rising - All you knead to know

Ruth Young Training Consultant

Last week two of the largest electricity suppliers in Northern Ireland, Electric Ireland and SSE Airtricity, announced they are raising electricity prices for domestic customers by 8% and 6.9% respectively from 01 October 2019. These increases come days after the announcement from Northern Ireland’s largest supplier, Power NI, that they were also implementing an increase of 6.1% for domestic customers. The price increases across the 3 businesses will impact 88.9% of domestic connections. Having compared the NI bill to the GB one two weeks ago, in this edition of SEM Chart of the Week, we investigate the contributing factors for the NI price increases. Showstopper As the dominant electricity supplier, Power NI are subject to price controls set out by the Utility Regulator (UR) in consultation with the Consumer Council and Department for the Economy. This determines the maximum price domestic customers of Power NI will pay for their electricity and the margin of profit that Power NI can make from their domestic customers. In July, a review, carried out by the UR, of the tariff and contributing market conditions determined it was appropriate to set a new standard domestic tariff of 17.85p/kWh (ex VAT) for Power NI customers, representing a 6.1% increase from the previous year. The announcement had a domino effect within the supply market. Technical challenge Electricity prices for domestic customers are made up of four main costs, wholesale, network, policy and supplier. In Northern Ireland, the wholesale costs (fuel and market costs) represent the largest element, making up more than half ...

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