Cost of living: NI energy prices 'may rise before a fall in 2023'

Wholesale UK gas prices have fallen to below 70p a unit

Energy prices in Northern Ireland may rise again before falling back later this year, the Consumer Council has warned.

The Utility Regulator may make pricing decisions on two major suppliers as soon as next week.

Underlying wholesale energy prices of gas and electricity have been falling.

However, that will be offset by the withdrawal of the government's energy price guarantee (EPG).

The EPG required suppliers to apply a discount to the price of each unit of gas or electricity to protect consumers from soaring prices after Russia's invasion of Ukraine.

It will expire at the end of June which means that from July consumers will be exposed to market prices.

'Regulatory system working well'

Peter McClenaghan, director of infrastructure and sustainability at the NI Consumer Council, said that when the regulator approves new tariffs bills "may not change much or even go up slightly".

Earlier this week, households in the rest of the UK were told they will see a significant fall in their energy bills from July after the regulator reduced the price cap, which limits how much suppliers can charge households for each unit of energy they use.

Northern Ireland is a separate market with its own regulator and throughout the energy crisis prices have tended to be lower than in the Great Britain market.

"We might see for a short period - a few months - prices that are slightly higher than England," Mr McClenaghan said.

"That's unfortunate, but on the whole the Northern Ireland regulatory system has actually been working quite well for consumers."

Wholesale UK gas prices reached almost £7 a unit (known as a therm) last summer but in recent weeks have fallen back to below 70p a unit.