Energy prices: Power NI electricity price to fall by 10%

The energy cap has been in place in other parts of the UK since the start of October

Power NI customers will see electricity prices fall by 10% from the start of November as a result of the energy price cap.

The cap will more than reverse a 60% increase which would have applied from the same date.

This cap sets the highest amount suppliers are allowed to charge domestic households for each unit of energy they use.

It has been in place in other parts of the UK since the start of October.

It will apply to all electricity and gas suppliers in Northern Ireland from the start of November.

Customers in Northern Ireland who saw prices rises in October will receive some form of rebate so they are on an equal footing with people in GB.

Power NI is the largest electricity supplier in Northern Ireland, with about 471,000 domestic customers which is more half of all connections.

Power NI last changed its prices in July when it put them up by 27.5%; that followed a 21.4% increase in January

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William Steele, Director, Power NI Customer Solutions, said: "As many customers will already be aware, the UK Government has announced a major intervention into the energy market called the Energy Price Guarantee (EPG).

"This means that from 1 November 2022, energy bill support will be provided to Northern Ireland residential customers, by reducing the underlying cost of electricity.

"Although we now must substantially increase our underlying price to reflect the current market, the implementation of the EPG will mean our customers will see a reduction in their billed tariff level of 10%."

'Ongoing volatility'

The NI Utility Regulator said with the cap in place the typical Power NI customer's bill will be 38% lower than the equivalent in Great Britain and 48% lower than the equivalent in the Republic of Ireland.

"Further tariff reviews for all suppliers are likely given the ongoing volatility of wholesale prices and the effect of changes to the EPG discount - the latter to be announced by the UK Government every three months going forward," John French, Chief Executive of the Regulator added.

"Separate to the energy price guarantee support, we are working with the UK Government and local energy suppliers to ensure that the £400 Energy Bill Support Scheme payment is paid to Northern Ireland consumers as soon as possible."