Electricity bills set to rise in the North

Billpayers in the North are facing a sharp rise in the price of electricity - but the 10

Billpayers in the North are facing a sharp rise in the price of electricity - but the 10.8 per cent increase in domestic tariffs was far less than had been anticipated.

As recently as a fortnight ago Northern Ireland Electricity (NIE) had been signalling a rise of around 18 per cent for its 758,000 customers.

However the company said a recent drop in the summer gas price had enabled them to limit the increase.

The announcement came a day after Powergen increased its prices by 18.4 per cent and soon after British Gas upped its electricity tariffs by 22 per cent.

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Indeed eight other power suppliers have put up their prices by more then NIE and only four have managed to keep theirs below that faced by Northern Ireland.

NIE said the price rise, to be introduced on April 1st, would mean a typical domestic bill rising by 10p a day or £3.10 a month.

Northern Ireland has traditionally had the highest prices in Britain but its standard domestic tariff is, for the first time, less than that charged to some 10 million customers in Britain.

Prices in the province will also remain below that charged south of the border and the EU average.

Like everyone else NIE blamed their increase on the sharp rise in international fuel prices - wholesale  gas prices have risen by around 75 per cent during the past year, they said.

Spokesman Robin Greer said the company appreciated its announcement would be unwelcome news for customers.

He said: "After several years of relatively stable electricity prices in Northern Ireland, it is desperately disappointing that this tariffs increase has been necessary."

But NIE said the increase was necessary to meet the rising cost of  the gas and oil burned in Northern Ireland's power stations.

Mr Greer added: NIE has withheld some of the rising costs of fuel over the last couple of years, but it is just not possible to do that indefinitely in the face of such unprecedented cost increases."

PA