Starting 1 October, almost 200,000 residential and small business customers of SSE Airtricity—the leading natural gas supplier in Northern Ireland—will see their prices rise by nearly 19%. On average, this will add close to £172 per year to household bills in the Belfast and West gas network regions, as soaring global energy costs continue to impact local consumers.
Volatile Global Markets Lead to Significant Price Upswing
“Unprecedented levels of volatility in global energy markets and higher wholesale gas prices” were cited by the company as the main causes behind the price jump. Over recent months, UK’s wholesale gas prices have effectively doubled. Colin Broomfield of the Utility Regulator links this trend to lengthy geopolitical instability, especially conflicts involving the US, Israel, and Iran, highlighting that “the sustained rise in the wholesale cost of gas is largely due to the ongoing conflict in the Middle East,” and referencing the Iranian conflict’s influence over the past six months.
Broomfield pointed to recent weeks, when the wholesale cost soared to 169 pence per therm—an amount two times higher than pre-conflict rates. Global oil prices have also been driven upward, exacerbated by the near closure of the Strait of Hormuz, a major route transporting about 20% of the world’s oil and liquefied natural gas, further tightening global supplies and spurring international price increases.
Mounting Pressure on Businesses and Households
Concerns about financial strain are widespread among local households and businesses. Glenn Davis, owner of a restaurant, described the mounting difficulties: “Running six days a week, our gas bill is already about £400, and our electricity runs to £500 per week as well.” Davis added that the mounting energy costs threaten all businesses, but their impact is particularly acute on small and high street establishments.
Domestic customers are also feeling these effects. Isobel Russell of Larne, whose husband resides in a care home, shared that most of their income is allocated to care costs, yet she must meet the same energy charges as everyone else. Russell, along with other customers, called for more substantial support from Stormont and urged an increase in domestic UK energy resources, including more extensive North Sea drilling.
Regulators Respond and Consumer Warnings Issued
Colin Broomfield from the Utility Regulator acknowledged the challenge: “This increase will be difficult news for many households and small businesses, particularly at a time when wider cost pressures remain a concern.” Raymond Gormley, the head of energy policy at the Consumer Council for Northern Ireland, described the 19.2% increase as “a significant amount,” noting that rising electricity and oil prices this year have compounded the problem. Gormley also explained, “Before the conflict in Iran, gas prices were about 80p a therm and it is now more than double that.” He noted that while internally anticipated, the rise will nevertheless be “a shock to consumers.”
According to recent analysis by the Consumer Council, gas in Northern Ireland now costs about £60 more than in the rest of the UK, though rates remain several hundred pounds lower than in the Republic of Ireland.
Support Schemes Offer Limited Help
Stormont plans to address the pressures by launching a scheme next month to provide eligible households with a £100 voucher for home heating oil. In addition, all households will benefit from a separate £50 discount on their electricity bills in October. However, many, such as Isobel Russell, insist this relief is not enough. “They’re not giving us much support at the minute, are they? I think they could do a lot more.”
With continued turbulence in global supply chains and the UK’s ongoing reliance on energy imports, Northern Ireland residents are preparing for potentially tough months ahead, as the connection between geopolitics, energy security, and local finances grows even more pronounced.
- Northern Ireland
- Cost of Living