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| Tue, 1st Nov 2022 7:41:00 |
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Energy Price Guarantee scheme: NI energy suppliers to reduce prices |
Energy companies in Northern Ireland are reducing prices for households on Tuesday as a consequence of the Energy Price Guarantee.
The UK government scheme will cap the price for a unit of gas and electricity from October 2022 to April 2023.
The support will reduce bills by up to 17p per kilowatt hour (kWh) for electricity and 4.2p/kWh for gas.
The government previously said homes using a typical amount of gas and electricity would pay £2,500 annually.
The cap was first announced in September by the then-Prime Minister Liz Truss, who initially said the scheme would last for two years.
However, after a turbulent few weeks for the UK economy, the plan was scaled back and the cap is now due to end in April 2023.
How does it work?
Under the scheme, householders will still pay for all the gas and electricity they use.
But the government's Energy Price Guarantee will now limit the price that suppliers can charge for each unit of energy.
Some customers' bills will still exceed £2,500 this year, if they use more energy than the typical household.
The Energy Price Guarantee is separate from the £400 Energy Bills Support Scheme which is an additional government plan to help people with energy costs this winter.
What does the price guarantee mean for my bill?
BBC News NI asked the main electricity and gas suppliers in Northern Ireland what the cap on prices would mean for their customers.
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Electricity
Power NI: Customers will see electricity prices fall by 10% as a result of the energy price cap, which will more than reverse a 60% increase that would otherwise have applied from Tuesday
SSE Airtricity: The support discount will be applied per kWh used, therefore customers' savings will depend on how much energy they use
Electric Ireland: Customers will save 19.91p on average per unit, which equates to about a 55% decrease on energy bills from Tuesday - it also equates to a saving of about £53 a month on an average residential electricity bill
Budget Energy: It is reducing the unit rate of electricity by 19.908p per kWh. How much a customer saves is dependent upon usage but for an average customer using 3500 kWh a year the saving will be about £595 including VAT
Click Energy: Domestic customers will benefit from a 54.72% decrease in prices from Tuesday
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Gas
Firmus: Domestic customers in Greater Belfast will benefit from a discount of 26% while those in the Ten Towns network will get 27% off - the estimated savings are about £11.70 a week
SSE Airtricity: The support discount will be applied per kWh used, therefore customers savings will depend on how much energy they use
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What are consumer experts advising?
"Consumers in Northern Ireland will welcome the Energy Price Guarantee as it will reduce their electricity and gas bills," said Peter McClenaghan of the Consumer Council.
"The scheme will apply a discount to the unit prices of electricity and gas and all suppliers will apply the same discount."
However, Mr McClenaghan said that would mean that some energy suppliers' prices "will still be much higher than others".
He encouraged customers to shop around and compare tariffs from different suppliers to make sure they are getting the best price per unit.
By switching to a supplier with a lower tariff, he said some households "could make savings of over £500".
The Consumer Council has a free online Energy Price Comparison Tool, which allows users to see the available tariffs from all suppliers in one place and it advised that customers can switch without any interruption to supply.
Mr McClenaghan added: "Consumers should know that their exact electricity and gas bills will still depend on how much energy they use - as the scheme is a discount - not a price cap.
"We also encourage any consumers who are struggling to pay their energy bills or to top-up their meter, to contact their supplier directly for help and information."
Read original full article
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