Support under the Energy Price Guarantee began being passed through to households in Northern Ireland from 1 November 2022, according to the government policy paper on the Energy Prices Bill1. The level of benefit was set to cover the increased energy costs between 1 October and 1 November 2022 as well, so that the discount applied to the earlier month retrospectively1.
The Energy Prices Bill was introduced to Parliament on 12 October 2022 and provides the legislative framework for the guarantee and the related business relief scheme1. The guarantee runs from 1 October 2022 until 31 March 20231. In Northern Ireland it delivers benefits equivalent to those in Great Britain, but because Northern Ireland has a different set of energy suppliers, the contracts are separate from the GB contracts, and the Bill reflects the role of the Northern Ireland Utility Regulator in enforcing the scheme1.
The Energy Saving Trust, in guidance last updated on 4 January 2023, states that the scheme reduces the price suppliers charge customers for units of gas and electricity and that it came in on 1 November 2022 in Northern Ireland2. The Consumer Council, in an October 2023 report, says the guarantee commenced in November 2022 and discounted the unit price paid by Northern Ireland consumers for electricity and gas3. It adds that on 1 July 2023 the government reduced the extra support through the guarantee to zero, meaning that for Power NI customers, as an example, support went from 3.77p per unit to 0p3.
Separately, households in Northern Ireland were to receive £600 through the Energy Bills Support Scheme, made up of £400 under the Energy Bills Support Scheme Northern Ireland and £200 from the Alternative Fuel Payment scheme, paid through electricity suppliers as a one-off payment starting in January 20232. The Consumer Council describes the £600 payment as having been rolled out from January 2023 with a successful uptake3. The Energy Saving Trust states that direct debit customers receive the payment into their bank account, while credit account and prepay keypad meter customers receive a voucher to redeem at a Post Office, valid until 31 March 20232.
"In Northern Ireland, benefits from the EPG will be passed through from 1 November 2022, with the level of benefit being set to cover the increased energy costs between 1 October-1 November 2022 too."
| Support | Amount | Timing in Northern Ireland |
|---|---|---|
| Energy Price Guarantee | Discount on unit price of gas and electricity | Passed through from 1 November 2022, covering costs from 1 October 20221 |
| Energy Bills Support Scheme NI | £400 | One-off payment through electricity suppliers, starting January 20232 |
| Alternative Fuel Payment | £200 | Combined with the above into a £600 payment2 |
Why it matters for households
Northern Ireland's energy market is separate from Great Britain's, with its own suppliers and its own regulator enforcing the guarantee, so the timing and delivery of support differed from the rest of the UK1. The guarantee worked by reducing the unit price charged for gas and electricity rather than by paying a lump sum, which means its value showed up in the rate paid per unit consumed2. For homes that use heating oil rather than mains gas, the £200 Alternative Fuel Payment was folded into the £600 paid through electricity suppliers2. The Consumer Council notes that energy prices remain around double the pre-pandemic norm and that the withdrawal of the guarantee's extra support from 1 July 2023 meant an estimated average extra cost of 14p per day for Power NI customers3. How far a household's bills are insulated from wholesale price movements depends on the tariff it holds and the fuel it uses, and the sources do not set out figures for individual household circumstances.
What happens next
The guarantee was in place until 31 March 2023, with a review to consider more targeted measures after that period1. The Consumer Council reports that the extra support through the guarantee was reduced to zero on 1 July 20233. The Energy Saving Trust states that vouchers for the £600 payment were only valid until 31 March 20232. No further dated steps are given in the sources.
Sources3 cited
- How households and businesses will be supported by the Energy Prices Bill - GOV.UK, gov.uk
- Energy bills support in Northern Ireland explained - Energy Saving Trust, energysavingtrust.org.uk
- 103824 Consumer Council - Debt, Disability and Energy FINAL.pdf, consumercouncil.org.uk