28% gas price hike kicks in across city

NATURAL gas boss Mark Prentice has written to Derry City Council claiming that despite a 28.4 per cent hike in prices effective this week the cost of gas is still on average 27 per cent cheaper than that of current home heating oil.

In a letter to Acting Chief Executive John Meehan, the firmus energy boss claimed the differential could help deliver savings of almost £226 per year for an average sized home.

The gas supplier - that began developing its NI natural gas network from 2005 - also confirmed that it will not review its prices again for at least 12 months, regardless of what the wholesale market or other companies might do.

Hide Ad
Hide Ad

“The new natural gas price equates to an increase of around £2.64 a week for the majority of customers,” wrote Mr Prentice.

“We recognise that this increase is difficult for domestic customers in our towns coming into winter.”

He added: “If we could have avoided it, we would have. However, whilst we were able to freeze our prices for the last two years, wholesale gas costs have increased dramatically over this period.

“Wholesale prices for gas this winter are 58 per cent higher than last winter and double the price compared to winter 2009.

Hide Ad
Hide Ad

“We are among the last of the gas companies in the United Kingdom to pass these increases onto our customers, despite other gas suppliers in Northern Ireland having put up their prices by almost 40 per cent earlier this year.”

Mr Prentice explained how the firm used an independent research company to check local oil prices every week and at its next tariff review in September 2012 it will ensure that its price for natural gas will be cheaper than home heating oil.

“Over the last year, the price of oil per litre has increased by around 30 per cent to an average cost of £531.50 for a delivery of 900 litres of oil. Not only that, but because the oil price fluctuates daily, it can be difficult for customers to budget for their home heating.

“One of many advantages of natural gas is that customers only have to pay for the gas they use and do not have to find a large sum of money for ‘a fill’ in advance,” he stated.

Hide Ad
Hide Ad

Business customers will also be feeling the price hike this week.

“In terms of our small business tariffs, I can also confirm that they will increase on October 1 by 30.2 per cent. Whilst we know this is unwelcome news, businesses can be reassured that our new tariff will still be 31 per cent than current gas oil prices,” he explained.

“On that basis an average sized could still save around £2,460 per year on fuel costs by choosing natural gas versus gas oil. Finally, in terms of your own Council area, I can confirm that despite these firmus energy gas prices in the 10 towns are still the lowest of any supplier in Northern Ireland,” he added.