Energy price cap announced for households in Northern Ireland

The UK government has announced an energy price cap from November for homes in Northern Ireland facing soaring bills.

Business secretary Jacob Rees-Mogg said the energy support scheme would offer households in Northern Ireland the same level of gas and electricity bill support as an equivalent initiative in Britain.

The announcement follows the launch of the Energy Price Guarantee in the rest of the UK, under which a typical household would pay an average of £2,500 (€2,857) a year on their energy bill for the next two years from October 1st. The scheme limits the price suppliers can charge customers for units of gas and electricity.

The government said the scheme would cover electricity and gas bills. Energy suppliers will have to reduce bills by a unit price reduction of up to 17p/kWh for electricity and 4.2p/kWh for gas. It has also said it will provide an additional payment of £100 to households who are not able to receive support through the price cap, such as those who use home heating oil.

The government said there is no need for householders to take any action to receive the support. It said the scheme will take effect from November, but it will ensure households receive the same benefit overall as those in Britain by backdating support for October bills through those for November.

Northern Ireland is in a separate energy market from the rest of the UK but the government has stressed people living there will receive “equivalent support”.

Households in Northern Ireland are also to receive a £400 discount on bills through the Northern Ireland Energy Bills Support Scheme, although no timescale has yet been given on when this will be made available.

The government has also announced plans to introduce a cap on wholesale energy bills for businesses in the rest of the UK from October, and said a parallel scheme would be established in Northern Ireland. This would see energy bills for businesses cut by around half their expected level this winter, although it is not yet clear when this relief will be available for Northern Irish firms.

Hospitals, schools, charities and other settings such as community halls and churches will also receive assistance. But hospitality chiefs said businesses in Northern Ireland need “urgent clarity” on how the business relief scheme will operate for their members.

Colin Neill, chief executive of Hospitality Ulster, said: “It is simply unacceptable that Northern Ireland businesses do not have any detail on how support will be provided.

“We need urgent clarity on how these measures will be carried forward. Thousands of businesses are on the brink, with many concerned how they will get through the winter,” he said. “The cost-of-energy crisis is a real threat to people’s jobs, livelihoods and businesses. In what should be the beginning of our busiest period, hospitality is instead looking at how to keep the lights on.”

Retail NI chief executive Glyn Roberts said: “Given the crippling financial difficulties that local independent retailers and other small businesses are experiencing, it is hugely disappointing that more clarity was not provided on the energy cap.

“We have been given no timelines on how the energy cap will apply to Northern Ireland business owners. This is unacceptable and our members deserve better.” - PA