Power NI customers face 14% bill hike despite 16.2% tariff decrease

Power NI has announced a 16.2% decrease in tariff, effective from 1st April, 2023.

However, the UK Government's Energy Price Guarantee (EPG) Scheme support will reduce by 10.33p per unit* and this will result in overall tariffs increasing by 3.72p per unit* or 14%.

Power NI is the only domestic electricity supplier in Northern Ireland who is price-regulated, providing customers with an additional level of safeguarding, as tariffs are only adjusted through a Utility Regulator validated formula. This is the second Power NI underlying tariff reduction in 2023.

The UK Government has announced it is reducing the level of Energy Price Guarantee (EPG) support given to all domestic customers in Northern Ireland. 

William Steele, Director, Power NI Customer Solutions, said: “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 continues: “We understand that some customers may be worried about paying bills. We would ask for any concerned customers to contact us directly and we will help you.

“As well as working directly with customers, we will continue to work closely with our charity partners and other key stakeholders, to ensure the most vulnerable in our society and those who are struggling get the help they need.” 
Meanwhile, Budget Energy is reducing its domestic standard variable unit rate by 19% from 1st April 2023.

The 19% reduced rate will apply to both prepay and billpay domestic electricity customers. For a typical prepay customer, this will mean a saving of around £324 per annum (incl VAT).

Commenting on the news, Sean O’Loughlin, general manager, Budget Energy, said: “The company has always been committed to offering our customers the best value and that once market conditions improved, we would pass those savings onto our customers.

“Therefore, we are pleased to confirm the rate cut from 1st April 2023, and we hope that this is the first step in returning household electricity prices to more affordable levels for our customers.”

Budget Energy warned that the international wholesale markets remain volatile, but the company will continue to monitor the market to see if further price changes are possible into the future.

 Sean O’Loughlin continued: “Budget Energy’s rate reduction should offset the majority of the ensuing increase to households from 1st April, following the reduction in Government Support.”