Two energy firms announce electricity price hikes

By Rebecca Black, PA

Concern has been expressed after two energy companies announced electricity prices are to increase by up to a third.

SSE Airtricity is set to increase prices by 33% from June 1 and Budget Energy is to increase prices by 27% from Friday May 27.

They said the hikes comes in response to sustained increases in wholesale costs affecting all energy suppliers and disrupting markets across the UK and Europe.

The two companies previously announced electricity price increases in October 2021.

SSE Airtricity’s standard tariff for both credit meter and keypad (PAYG) meter customers will increase by £248 to just over £1,000 a year.

Budget Energy’s typical customer with a credit meter will see their bill rise by around £280 per year while customers with a keypad (PAYG) meter will see a yearly increase of about £275 per year.

Peter McClenaghan, director of infrastructure and sustainability at the Consumer Council, described the price increases as the latest in a line of bad news regarding the increasing cost of living in Northern Ireland.

“At the Consumer Council we listen to consumers daily and hear first-hand how upset, worried and angry they are about price increases,” he said.

“While consumers get that these price increases are happening due to global reasons, it doesn’t make it any easier for people to pay their bills, particularly those in vulnerable circumstances.

“If you are struggling to pay your bills, the first thing to do is contact your supplier directly for help and information.

“There are measures that can be put in place to help you.

"Unfortunately, prices are set to stay high for the foreseeable future, so the Consumer Council will continue to push for significantly improved initiatives to help consumers who are experiencing payment difficulties.”

Many politicians are calling on the government to tackle the cost of living crisis and get support to every household.

Some are saying food banks are busier than ever because of it.

SSE said it is providing extra support – including expanding its existing customer support fund by an additional £1m – to help customers in difficulty.

Managing director Klair Neenan said SSE will continue to monitor the market and hopes to reduce prices as soon as it can.

“Throughout winter, we worked hard to limit the local impact of the global energy crisis by absorbing record high wholesale energy costs, hoping to see pressure on prices ease,” she said.

“Sadly, this has not been the case and energy prices continue to demonstrate sharp volatility and upward pressure. Regrettably, this must now be reflected in our prices.

“We know this price change will be disappointing for our customers and not the news they want to hear. We will continue to watch the market carefully and, as we have done before, will look to reduce our prices as soon as it is possible to do so.

“SSE Airtricity has a longstanding and continued commitment to working with and supporting customers in need.

“Last year, we began contacting customers who were experiencing financial pressure to provide support, including financial assistance, and establish a long-term plan to help them manage their energy needs.

“We are expanding those supports and will continue to support and engage with any customer who is finding it difficult to manage their energy costs.”