Investigation as NI gas bills climb 20%
An urgent investigation into a 20% rise in gas bills in Northern Ireland next week was ordered by a British government minister today.
Ian Pearson, Minister for Enterprise, Trade and Investment in the North, asked the Energy Regulator to carry out the investigation and report back to him by the end of the month.
He said he wanted to know the circumstances leading up to the announcement by Phoenix Natural Gas that it was putting up the price of gas to consumers by a fifth on April 1 on top of a 10.8% increase last October.
The minister met a cross-party delegation of local politicians today to discuss the planned rise, which Phoenix has refused to postpone despite a call from the North's General Consumer Council.
Mr Pearson said he was “deeply concerned” about the price announcement.
“The scale and timing of the increase is particularly disappointing,” he said.
“It represents a significant burden for gas consumers to bear, especially for those on low incomes. I am also concerned about the potential implications for the development of the gas industry in Northern Ireland.”
Phoenix has imposed the increase on its customers to cover a rise in the cost of gas it expects to pay its supplier, British Gas owner Centrica.
A year ago Centrica gave Phoenix notice that it wanted to negotiate an increase for the last three years of its 10-year contract, starting in October 2003.
No agreement has been reached and Phoenix is currently paying the old price, which Centrica says is “substantially below market levels”.
Any new price will be backdated to October and Phoenix says it needs the 20% increase in bills to meet the extra charge.
Phoenix has taken legal action against Centrica and last night appeared to show little interest in a Centrica proposal for an independent expert to be called in to set a price.
Mr Pearson said he had conveyed his concerns about the rise to the chairman and chief executive of Phoenix, calling on the company to press ahead urgently with the Energy Regulator to put in place “necessary long-term price stability measures for the benefit of consumers and the development of the Northern Ireland gas industry”.
