Utility Regulator Announces A Reduction Of Over 10% In Electricity Network And PSO Tariffs
The Utility Regulator has published an information note explaining the changes to electricity regulated network and Public Service Obligation (PSO) tariffs in Northern Ireland that will take effect from 1 October 2010. On average, these tariffs will decrease by over 10%.
These charges, together with wholesale energy and capacity costs, the climate change levy, supplier charges and VAT make-up the total cost of electricity charged to businesses. For domestic customers (i.e. householders), the announcement on NIE Energy Supply’s tariff will take place in early September.
Shane Lynch, Director of Electricity at the Utility Regulator said:
“It is important to note that these tariffs only make-up around 20-30% of the final electricity bill, nonetheless, the 10% reduction is very welcome.
“Rigorous scrutiny by the Utility Regulator, together with a reduction in NIE’s allowed rate of return on investment, and the cancellation of the Kilroot Power Station generating contracts, have all contributed to these reductions.”
Chief Executive of Northern Ireland Manufacturing, Bryan Gray said:
Northern Ireland Manufacturing welcome the announcement by the Utility Regulator that some elements of commercial electricity bills here are to fall by 10% leading to possible reduction in overall bills of up to 3%. We note however, that these reductions are based on a projected increase in overall consumption. Given that Northern Ireland is still in recession and that production continues to fall while unemployment increases, we believe that customers should not rely on these reductions continuing for the long term