Come July 1, Power NI and Firmus customers will be treated to a delightful surprise: higher energy bills, because apparently the global energy market has decided that Northern Ireland households needed a little more excitement in their lives.
Power NI's electricity unit price is rising by 6.2%, which the company calculates as an extra £5 per month for the average household. Meanwhile, Firmus is hiking its natural gas tariff by 15.65% for its Ten Towns customers, adding £2.47 per week (£10.70 a month) to the average bill. Both suppliers are pointing fingers at higher global energy and gas prices, which have been on a tear since Iran responded to US and Israeli attacks by effectively blocking the Strait of Hormuz - a narrow waterway through which a fifth of the world's oil and gas usually flows. Who knew a shipping lane could cause so much financial drama?
Power NI's William Steele delivered the bad news with a heavy heart: "This tariff increase was not a decision we've taken lightly." He added that they've "worked hard to hold prices for as long as possible," but sustained increases in global gas costs, along with higher network and market charges, made the increase "unavoidable." Steele also noted that despite the hike, Power NI's tariffs remain competitive locally and below the average in Great Britain and the Republic of Ireland - so, you know, at least you're getting a better deal than your neighbors.
Firmus's David Smith, meanwhile, pointed to "elevated wholesale prices while the conflict in the Middle East remains unresolved." He tried to soften the blow by reminding customers that the company had reduced tariffs three times over the past year, cutting bills by over 27% and saving customers around £300 on average per annum. "While the increase is unwelcome," Smith said, "it means that customers' bills will now be roughly the same as this time last year and still significantly below where they had been in previous years." So, in other words, you're back to where you were a year ago - progress?
Leigh Greer of the Utility Regulator acknowledged that "this increase in energy costs is not welcome news for consumers," but attributed it to the "continued and sustained rises in the wholesale cost of energy, caused by the conflict in the Middle East." She noted that the conflict has already affected home heating oil, petrol, and diesel prices - because why limit the misery to just one type of energy?
Raymond Gormley of the Consumer Council for Northern Ireland called the gas price increase "inevitable" due to the Middle East conflict and warned that if the conflict continues, customers could see their bills rise even more. "Another regulated gas tariff review is scheduled for October," Gormley said, "and if the conflict is not resolved very soon, we could see further gas price increases in the autumn." The CCNI's advice? Think about how you pay for your energy, switch payment options, change billing methods, or switch suppliers - anything to avoid paying more for the privilege of heating your home.