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Northern Ireland

Directions No. 2 issued for domestic gas and electricity suppliers

The Secretary of State has issued Directions No. 2 for domestic gas and electricity suppliers in Northern Ireland, revoking the December directions that restricted when tariff changes could be made.

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The Secretary of State for Energy Security and Net Zero has issued new ministerial directions covering domestic gas and electricity suppliers in Northern Ireland, both dated 23 June 2023. The two documents, Directions No. 2 under section 22 of the Energy Prices Act 2022, revoke the Directions No. 1 issued in December 20221.

The earlier directions, dated 19 December 2022, required domestic electricity and gas suppliers in Northern Ireland to seek agreement to make tariff changes on days other than the first day of a quarter1. The replacement directions remove that requirement, allowing suppliers to change tariffs on days other than the first day of a quarter1.

The stated reason for the change is the level of Energy Price Guarantee support. The government says the EPG support rate has now been notified as 0p/kWh in Northern Ireland for the next quarter, so the justification for keeping the restrictions in place has fallen away1.

"With the EPG support rate now notified as 0p/kwh in Northern Ireland for next quarter, the justification for keeping these restrictions in place has fallen away. The Secretary of State has therefore issued new Directions (No. 2) which revoke the original Directions (No. 1)."
GOV.UK, Energy Price Guarantee for domestic energy consumers in Northern Ireland: ministerial directions1

The directions apply to Northern Ireland only1. The page was first published on 4 January 2023 and last updated on 14 July 20231.

DirectionDateEffect
No. 1 (gas and electricity)19 December 2022Required suppliers to seek agreement to change tariffs on days other than the first day of a quarter1
No. 2 (gas and electricity)23 June 2023Allows tariff changes on days other than the first day of a quarter; revokes No. 11

Why it matters for households

Northern Ireland has its own energy suppliers and its own utility regulator, and the Energy Price Guarantee was administered there through separate directions rather than through the price cap that applies in Great Britain. The practical effect of the change is on timing. Under Directions No. 1, a supplier wanting to move its prices on a date other than the first day of a quarter had to seek agreement first. Directions No. 2 remove that step, so a tariff change is no longer tied to the quarter boundary in the same way1.

For a household, the timing of a price change affects when a new rate starts to apply to consumption, and therefore what appears on a bill covering a period that spans the change. The directions themselves do not set prices; they govern when suppliers may alter them. The notification that EPG support in Northern Ireland stands at 0p/kWh for the next quarter means the guarantee is no longer adding a per-unit subsidy to domestic rates there1. What individual suppliers do with the freedom to change tariffs on other dates has not been reported.

What happens next

No further steps are set out in the directions. The page records a last update of 14 July 2023, when the publication of Directions No. 2 was noted1.

Sources1 cited
  1. Energy Price Guarantee for domestic energy consumers in Northern Ireland: ministerial directions - GOV.UK, gov.uk