Power NI announced on 16 March 2023 that a review of its underlying residential unit price had produced a 6.61p per unit decrease, a fall of 16.2 per cent, which it attributed to lower wholesale market costs1. The same announcement said UK Government support under the Energy Price Guarantee (EPG) would fall by 10.33p per unit, so that overall tariffs rise by 3.72p per unit, or 14 per cent, from 1 April 20231. All figures include VAT1.
The company said this is the second reduction to its underlying tariff in 2023, and that it is the only domestic electricity supplier in Northern Ireland whose prices are regulated, with tariffs adjusted only through a Utility Regulator validated formula1. The EPG reduction applies to all domestic customers in Northern Ireland, not only Power NI customers1.
"A decrease in wholesale energy prices has enabled Power NI to again reduce its underlying unit price. However, the recent change by the UK Government to its Energy Price Guarantee means that a lower level of scheme discount will be applied to all electricity bills. Unfortunately, this means customers will see a 14% increase in prices."
William Steele, Director of Power NI Customer Solutions, also said the company would ask concerned customers to contact it directly, and that it would continue working with charity partners and other stakeholders to reach vulnerable customers and those struggling to pay1. The announcement set out discounts available to its customers, including up to £60 a year for those paying by online billing and monthly Direct Debit, and uncapped discounts plus free electricity on top ups of £50 or more for pay as you go Keypad customers using the company app or website1. It said Power NI is providing financial support to around 65 charity partners and community groups across Northern Ireland, through Keypad top ups, aid to food banks and help for older people1.
| Element | Change per unit |
|---|---|
| Underlying residential unit price | down 6.61p (16.2%) |
| Energy Price Guarantee support | down 10.33p |
| Overall tariff | up 3.72p (14%) |
Why it matters for households
The headline movement is a cut, but the bill movement is an increase. Power NI's own unit rate falls while the government discount applied to every domestic electricity bill in Northern Ireland falls by more, so the amount a household pays per unit rises from 1 April 20231. For a household, the practical effect is that the Power NI tariff change and the Energy Price Guarantee change pull in opposite directions, and the scheme change is the larger of the two. Because the EPG reduction applies to all domestic customers in Northern Ireland, the same downward pressure on support affects households regardless of supplier, including customers of Budget Energy and others in the Northern Ireland market, which operates separately from Great Britain1.
For a home's energy independence, the episode illustrates a dependence on a temporary government discount rather than on the underlying cost of supply: the wholesale cost fell, the regulated unit price fell, and the bill still went up. Households wanting to reduce exposure to that pattern have to look at how much electricity they use and when, since the unit price is set by formula and the discount by scheme. The announcement does not give standing charge figures, annual bill estimates or the effect on any other supplier's tariffs, and none of those have been reported here1.
What happens next
The new residential electricity unit price takes effect from 1 April 20231. Power NI said it will continue to work with customers, charity partners and other stakeholders on support for those struggling to pay, and directs customers to its Energy Bill Support page for details of help1. No further tariff review date was given in the announcement1.
Sources1 cited
- Power NI tariff announcement, powerni.co.uk