SSE Airtricity and Budget Energy cut electricity prices

SSE Airtricity said this the price cut was a sign of the company being able to pass on lower wholesale prices to customers

A price cut for Northern Ireland's second largest electricity supplier comes into effect on Wednesday.

The move by SSE Airtricity will affect about 160,000 households in Northern Ireland who will see a 7% cut in electricity prices.

It will mean typical customers are expected to save more than £90 a year, according to the energy company.

Meanwhile, Budget Energy is cutting electricity prices for its 80,000 NI customers by 8% from 1 December.

The company said it will save a typical customer about £110 a year.

SSE Airtricity said its price cut was a sign of the firm being able to pass on lower wholesale prices to customers.

Peter McClenaghan of the Consumer Council said it is "welcome" news for consumers.

"The coming winter will be tough for many of us as energy bills are around twice the pre-pandemic average and no government support has been announced for the winter ahead," he said.

Energy bills in Northern Ireland are about twice the pre-pandemic average

"By contrast, last winter all households had their energy bills subsidised and received a £600 payment."

While there is no universal support for households in Northern Ireland this winter, those on certain means-tested benefits are due to get a second cost-of-living support payment.

Many low-income households in Northern Ireland will receive £300 from the government between 31 October and 19 November.

The latest payment is the second of three for 2023-24 after the first instalment of £301 arrived in bank accounts last spring.

• Five tips for cutting energy costs this winter

The third instalment of £299 is due in spring 2024.

At the time of the last price review in June, tariffs were cut but consumer bills actually increased because 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.

Announcing his company's price cut, Budget Energy's general manager Sean O'Loughlin said: "Now as winter approaches, our customers will benefit from these reduced electricity prices at a time when overall household costs can be at their highest."