‘No end in sight to high gas prices,’ says regulatator as firmus tariff surges by 33.57%

In a statement issued today (Tuesday February 1) the firm said gas prices would be rising at the end of the month.

A spokesperson for firmus said: “Due to further increases in global wholesale gas prices, Northern Ireland’s largest gas supplier, firmus energy, has today announced a 33.57% increase to the natural gas tariff in their Ten Towns Network area. This will take effect from the 24th February 2022.

“Today’s announced change in tariff will mean an extra £5.95 per week on to the average household bill.”

The Ten Towns Network area includes Antrim, Armagh, Ballymena, Ballymoney, Banbridge, Coleraine, Craigavon (including Lurgan and Portadown), Limavady, Derry/Londonderry, Newry, and more than 25 other towns and villages in the surrounding areas.

Dr David Dobbin, Chairman of firmus energy, said: “Unfortunately, due to the sustained high prices in wholesale gas markets we have had no option but to make a further increase in our gas tariff.”

“Very low gas stocks; reduced Russian supplies and concerns about the Ukraine situation are all combining to keep European gas prices high. The market crisis has been well publicised, and markets look increasingly like they are going to remain high for some time.

“As we have previously stated this is not just a firmus issue, but a challenge faced by every local and national supplier of gas and electricity all of whom are affected by the huge upsurges which have taken place in wholesale gas and energy costs. Regrettably, we, in Northern Ireland, are at the mercy of the global wholesale gas market and are unable to influence these prices.

“We know this is another unwelcome increase which will have a disproportionate effect on those of our customers who are the most vulnerable. We have been providing financial support to the Department for Communities scheme to help those most in need and will continue to do so. If any of our customers feel that they require further support, they should contact us directly to see how we can help.”

Customers seeking advice on their natural gas bills or direct debit payments should contact the firmus energy Customer Services team on 0330 024 9000. Our telephone lines are open 24 hours a day, 7 days a week. For free and independent advice on how to save energy please contact NI Energy Advice Line on 0800 111 4455.

Commenting on this increase, John French, Utility Regulator Chief Executive said: “In late December 2021, we received a submission from Firmus Energy to undertake an ad-hoc review of their regulated Ten Towns tariff for domestic and small business[1] consumers. The review took place against a continuing increase in wholesale gas prices, which have risen significantly since Firmus Energy’s last tariff increase on 3 December 2021.

“We have now analysed and evaluated Firmus Energy’s submission and consulted with the Department for the Economy and the Consumer Council for Northern Ireland. This review has unfortunately concluded that a 33.57% increase from 24 February 2022 is needed to reflect the ongoing and exceptional price spikes that have been experienced in the global wholesale market.

“This will regrettably mean that the average annual household gas bill[2] in the Ten Towns licence area will increase to £1,293 per year.

“The unparalleled increases in the cost of wholesale energy at a global level have persisted and continue to impact on supplier costs. This has been exacerbated by the overall volatility within the market, with significant price movements occurring on a daily basis.

“Unfortunately there appears to be no end in sight during 2022 for significantly above trend wholesale prices. However, if wholesale prices begin to reduce, our system of regulation in Northern Ireland allows us to act to make sure that reductions are fully passed onto consumers as quickly as possible.

“We are extremely aware of how this further energy price increase will affect consumers in Northern Ireland. We established a working group with the Department for the Economy, Department for Communities and the Consumer Council for Northern Ireland to actively explore what practical measures can be brought forward to alleviate the burden of these higher prices on consumers, this winter. I am pleased that the Northern Ireland Executive has provided significant funding to support local energy consumers.

“I have written to all energy suppliers and reminded them of their regulatory obligations to avoid customer disconnections and consider other approaches to protecting customers in debt. We are also following this up with individual meetings with all energy suppliers, to ensure they are doing all they can to support their customers.

“I would encourage anyone worried about paying for their energy bill to contact their supplier as soon as possible. There are also a number of agencies who can provide free and independent advice, including Advice NI, Money and Pensions Service and Christians Against Poverty.”