The north’s biggest domestic electricity supplier Power NI is increasing bills by 4% from December 1 for its 500,000 domestic customers.
The hike in it residential unit price to 30.91p/kWh, which has been approved by the Utility Regulator, will see customers pay an average of 10 pence more per day.
The Consumer Council says a typical Power NI customer with a credit meter will see their bill rise by around £38 a year, while customers with a keypad (PAYG) meter will see a yearly increase of about £37.
Power NI, which is owned by the Dublin-based Energia Group, is the first supply company to announce an increase, which it is blaming on high wholesale prices, and it is likely other suppliers will follow suit.
William Steele, director customer solutions at Power NI, said: “We work hard to keep our prices as low as possible, but wholesale prices remain high and significant increases in third party market operation and network related costs have regrettably necessitated a tariff increase.
“In these challenging times, we have held off changing prices for as long as possible and we have been able to keep our tariffs below the equivalent GB and RoI average.”
He said customers can help reduce the impact of the tariff increase by ensuring they are on the best payment plan for their needs, which includes choosing options like paying by direct debit and registering for online billing which include extra discount.
He added: “We value our customers, and we are continuing to work closely with our charity partners and other key stakeholders across our local communities to provide support to those in need.
“We have a range of support available from tariff advice to energy saving tips and account support, so if anyone is worried about paying bills, please contact us directly, we are here to help.”
Karen Smyth, director of infrastructure and sustainability at the Consumer Council said: “From December, over 500,000 homes in Northern Ireland will see their annual electricity cost rise to just under £990 a year for a typical credit customer and just under £965 a year for a typical keypad customer.
“While this is unwelcome news, we are aware the main driver for this is an increase to market operation and network costs, unfortunately this is being passed unto consumers.
“This is the first tariff increase from the regulated Power NI in two years and the Consumer Council work closely with the Utility Regulator to ensure consumers are protected and supported, and no unnecessary costs are added, or additional profits are made by the supplier.
“We encourage consumers to think about the way they pay for their energy and see if they can reduce their energy costs.”
Power NI reported a loss of £71.3 million in its latest financial year, despite making a pre-tax profit of £205m
Its revenues surged by 30% to £1.454 billion in the year to March 31 2023, on the back of rising electricity prices and a jump in revenue from its power procurement business (PPB).
The PPB largely relates to Power NI’s role in administrating the sale of wholesale electricity from Ballylumford power station into the I-SEM, which is the wholesale electricity market for Northern Ireland and the Republic.
The additional £335.8m in revenue in the year to March 31 2023 helped produce a profit before tax of £205m, which after tax left Power NI with a profit of £165.9m for the financial year.