NI gas prices to increase next month

GAS PRICES in Northern Ireland are set to increase by a record near 40 per cent from next month, the North’s utility regulator has warned.

One of Northern Ireland’s largest natural gas suppliers, Phoenix Supply, has confirmed it intends to increases gas prices by 39.1 per.

The price increase will apply from May 1st and will affect its customers in the greater Belfast area.Phoenix has about 135,000 customers.

Its key rival, Firmus Energy, has said it will freeze its natural gas prices until at least October 2011.

But the decision by Phoenix to introduce a sharp rise in prices could push annual gas bills for some consumers to between £580 (€655) and £600.

Utility Regulator chief executive Shane Lynch said the gas price hike was “very bad news for many consumers in these difficult times”. Mr Lynch said the utility regulator regretted having to approve any price increases.

“This increase is wholly attributable to rising wholesale gas costs.Wholesale fuel costs are the single largest component of the gas prices paid by consumers. In recent months wholesale fuel costs have been volatile, influenced largely by events in Japan and Libya.” He has also warned that prices next winter are likely to be 77 per cent higher than they were last year.