On Budget Day, it hasn’t gone unnoticed that electricity consumers face a major cost increase, following the Utility Regulator’s final determination on NIE Networks’ Price Control. This decision reinforces concerns that energy policy and regulation have been overtaken by profitable utility companies and global investors—impacting SMEs and larger businesses that contribute to local jobs and communities.
Despite promises of a “just transition” to a greener energy system, this price control suggests that policymakers, regulators, and energy companies see “just” as meaning business interests over fair distribution of costs. Pay packets will bear the burden, affecting manufacturers, food retailers, hospitals, and other major energy users, with consumers ultimately shouldering these costs through higher prices and reduced funding for critical services like the NHS and NI Water.
Ireland and Northern Ireland already have Europe’s highest electricity generation costs. Contrary to the spin that these prices stem from international commodity costs, the focus should be on unchecked profiteering by energy generators, including renewables. Many enjoy margins as high as 77% gross and 41% net. The planned rise in network costs, framed as necessary for renewables, will ultimately enrich generators and the network provider rather than consumers.
The Regulator’s Board has yet to act on its responsibility to protect consumers. We urge the Department for the Economy and Finance to investigate and ensure fair cost distribution, protecting the affordable wholesale market and the jobs it supports.