The House of Lords Grand Committee considered and agreed the Energy Prices (Domestic Supply) (Northern Ireland) Regulations 2022 on 16 November 2022. The regulations were laid before the House on 31 October 2022 and define the terms "Northern Ireland domestic electricity supply" and "Northern Ireland domestic gas supply" for the purposes of the energy price guarantee Northern Ireland schemes1.
Lord Callanan, Parliamentary Under-Secretary of State at the Department for Business, Energy and Industrial Strategy, moved the motion. He said the electricity and gas markets operate differently in Northern Ireland, with a different regulator, the Utility Regulator for Northern Ireland, no price cap and an entirely different set of suppliers, so Northern Ireland could not fall under the Great Britain scheme1. The EPG NI reduces the unit cost of electricity and gas for domestic consumers, with suppliers reducing bills by a set amount of pence per kilowatt hour and the Government compensating them. Electricity costs are being reduced by 20 pence per kilowatt hour and gas by almost 5 pence per kilowatt hour1.
"The EPG schemes in Great Britain and Northern Ireland are intended for customers on domestic tariffs"
The definitions mean some non-domestic premises fall within the electricity scheme, including some places of worship with similar metering and tariff arrangements to domestic premises. Lord Callanan said there was no timely way for suppliers to disaggregate them, and that possibly fewer than 100 non-domestic premises are in scope1. The energy bill relief scheme covers customers on non-domestic tariffs1.
Lord Browne of Belmont said two-thirds of households in Northern Ireland use heating oil, and that unlike Great Britain the oil market there is not regulated. He asked how oil users would be compensated. He also noted that SSE Airtricity supplies Greater Belfast and Firmus Energy supplies townlands, and that the Utility Regulator must approve tariff changes proposed by Firmus Energy in its 10 townland networks but not in Greater Belfast1. Lord McCrea of Magherafelt and Cookstown said the £100 alternative fuel payment for households not using mains gas for heating was "totally useless and verging on an insult" to those in need, and asked for clarification on when the £400 energy bills support scheme payment would arrive1.
On the alternative fuel payment, Lord Callanan said it is designed by reference to increases in the price of heating oil and other alternative fuels from September 2021 to September 20221. On the £400, he said it will not be backdated as it is paid as a flat sum, while the EPG is backdated via an additional pence-per-kilowatt payment on top of the base EPG rate from November to March1.
| Item | Detail |
|---|---|
| Electricity unit reduction | 20 pence per kilowatt hour1 |
| Gas unit reduction | almost 5 pence per kilowatt hour1 |
| Alternative fuel payment | £100 for households not using mains gas for heating1 |
| Energy bills support scheme | £400 flat sum, not backdated1 |
Why it matters for households
The regulations are narrow: they set the legal definitions that let the EPG NI operate for households on domestic electricity and gas supply. The practical effect is a per-unit reduction on domestic electricity and gas bills, with the Government compensating suppliers. For the two-thirds of Northern Ireland households using heating oil, the EPG does not apply; the separate support described in the debate is the £100 alternative fuel payment1. The debate records that a typical household in Northern Ireland has seen its energy costs increase threefold since the same time last year1.
What happens next
Lord Callanan said the Government will consider how best to offer further support to the customers most at risk from energy price increases beyond April 20231. The debate records that the scheme is already in force and delivering support to households across Northern Ireland1. No date for the £400 payment was confirmed in the debate1.
Sources1 cited
- Energy Prices (Domestic Supply) (Northern Ireland) Reg - Hansard - UK Parliament(NorthernIreland)Regulations2022), hansard.parliament.uk