Committee Position On Electricity Prices Supported By Independent Report

The Assembly’s Enterprise, Trade & Investment Committee has welcomed the publication of Douglas McIldoon’s review of the approval of electricity price increases.

Chairperson Mark Durkan said, “From briefing by Mr McIldoon and reading the report, the Committee feels vindicated in the questions we had raised about the recent NIE price increase and the wider pricing regime. Committee members have also noted the important role of the Consumer Council in these matters and are glad to see that underscored in Mr McIldoon’s report.

“This report says that the regulator was right, within the rules of the process and market conditions at the time, to approve the 33 1/3 % price increase for NIE customers. However he also points to the need to adjust that process to ensure better price outcomes and better public confidence. He points to some of the issues our Committee members had voiced when we questioned the regulator and Consumer Council. One example is the fixed purchasing period imposed on NIE which had the effect of locking us all on to high prices this year.

“The committee are keen to follow up Mr McIldoon’s suggestions to move price structures on by reducing the cost of procuring generation and making the single Electricity Market start to work for consumers. His report offers ideas and challenges to policy makers and we want to take these forward in the context of a strategy that reduces dependence on fossil fuels and provides cost competitiveness for customers whether households or businesses!”

Jennifer McCann, deputy Chair added, “The findings of this report add increased urgency to the Regulator’s review of current electricity prices. There is a need to ensure that electricity prices come down as quickly as possible in the way in which gas and oil prices have come down. We had written to the Regulator to urge the current review looking at reducing prices again and believe that the public have the right to expect significant price reduction and soon.”

ENDS

Notes to Editors

The Committee for Enterprise, Trade and Investment’s membership is:
Chairperson Mark Durkan MP (SDLP) 
Deputy Chairperson Jennifer McCann (Sinn Fein) 
Alliance Sean Neeson 
DUP Simon Hamilton 
Robin Newton 
Jim Wells 
Sinn Fein Paul Butler 
Independent Gerry McHugh 
SDLP Alasdair McDonnell MP 
UUP Leslie Cree 
Alan McFarland