Decision On Gas Prices Will Have Major Impact On Costs
Manufacturing NI have expressed dismay at the announcement this week by the Competition Commission of their final determination on the Phoenix Natural Gas price control which shows little change from their preliminary decision published earlier this year.
MNI Chief Executive Bryan Gray said “Despite the fact that the Competition Commission’s preliminary determination was universally opposed by groups representing gas users, including Manufacturing NI, the Consumer Council, Bryson Energy and others, the commission have allowed costs which radically depart from good regulation practice. Large gas users in northern Ireland will pay a heavy price for this decision for many years to come”
Utility Regulator Chief Executive, Shane Lynch, said:
“We welcome the Competition Commission’s confirmation that the current Phoenix licence conditions were not operating in the public interest and needed to be changed. Gas consumers will now benefit to the tune of £19.2m as a result of the Utility Regulator not accepting Phoenix’s proposals for the next price control period.
“We also welcome the Competition Commission’s decision that domestic and business gas consumers should not pay twice for business rates incurred by Phoenix.
“Phoenix’s proposals would have increased domestic bills by around £24 per year. The Utility Regulator’s final determination would have reduced domestic bills by around £1 per year. The Competition Commission’s final determination will increase domestic bills by around £11 per year for 2012 and 2013. For large businesses, this will add tens of thousands of pounds to their annual gas bill.
The full text of the Competition Commission decision can be found here:-