Power NI, Northern Ireland's largest electricity company, increased its domestic electricity prices by 21.4 per cent from 1 January 20221. The company announced the change on 19 November 2021, saying it was equivalent to £2.51 a week on a typical household electricity bill2. National Energy Action (NEA) Northern Ireland, in a letter to the region's MPs dated 11 January 2022, put the effect on the average household at an additional £131 per year1.
The tariff change was approved by the Utility Regulator and applies to domestic customers only2. Power NI said the increase was "entirely due to the unparalleled rise in prices across the global wholesale gas markets" and that it had "no option but to pass these costs on"2. The company's published typical bill figure, based on annual consumption of 3,200 kWh including 5 per cent VAT, is £7412.
"We work very hard to keep our prices as low as possible, but regrettably there has been a rapid and sustained increase in wholesale gas prices over recent months. Like other suppliers, we have no choice but to pay these increased costs, which feed into the cost of wholesale electricity and have a knock-on effect on our tariffs."
NEA Northern Ireland said this was the second price rise announced in the previous year1. It also set out the position for gas customers, reporting that the average annual household gas bill in Northern Ireland had risen from £461 in October 2020 to £968 as of December 2021, and that firmus energy, the sole provider in the Ten Towns area, had raised prices three times between April and December1.
| Item | Figure |
|---|---|
| Power NI domestic price increase | 21.4 per cent from 1 January 20222 |
| Weekly effect on a typical bill | £2.512 |
| Annual effect on the average household | £1311 |
| Power NI typical annual bill (3,200 kWh, incl. 5% VAT) | £7412 |
| Average NI household gas bill, October 2020 | £4611 |
| Average NI household gas bill, December 2021 | £9681 |
Why it matters for households
Northern Ireland does not have an energy price cap. NEA Northern Ireland states that the regulator there does not currently employ one, and that regulated companies must announce a price increase 21 days in advance but can approach the Utility Regulator at any time in the year to start that process1. That contrasts with the arrangement in Great Britain, where the cap is reset twice a year in April and October, giving households set periods in which to prepare1. The practical effect is that wholesale cost movements reach Northern Ireland households faster and at less predictable times, which makes budgeting harder.
NEA Northern Ireland also notes that vulnerable consumers in Northern Ireland do not have access to the Warm Homes Discount, which provides a £140 discount on electricity bills between October and March to qualifying households in Great Britain1. It said it expected as many as 40 per cent of households to be struggling because of energy costs, and reported a significant rise in households seeking emergency support1.
For a household, a supplier price change of this kind shifts the balance between what a home buys from the grid and what it can meet itself. Higher unit rates raise the value of any electricity a home generates or avoids using, and they raise the cost of the same consumption pattern. The Power NI tariffs page sets out the rates and standing charges that apply, and the wider Northern Ireland tariffs position covers how the separate market works. Power NI said customers can offset part of the increase through payment plans and online billing, with a discount of 6 per cent, up to £60 a year, available to bill paying customers through online billing and monthly direct debit2.
What happens next
NEA Northern Ireland's letter states that the Great Britain price cap announcement was due on 7 February, with the impact felt from 1 April1. No further Power NI price change has been reported. Power NI said that "as soon as we see an opportunity to reduce prices, we will do so without delay"2.