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Price hike takes effect on 1 October

SSE Airtricity’s gas price increase will affect about 200,000 household and small business customers in Northern Ireland. The company said it will raise its natural gas tariff by 19.2% from 1 October.

The change will add about £172 a year to the typical household bill in the Belfast area and western gas network regions. The company said the move reflects sharp volatility in global energy markets and rising wholesale gas costs.

What market forces are behind the increase?

Utility Regulator official Colin Broomfield said the main driver behind the latest rise was a sustained increase in wholesale gas prices linked to the conflict in the Middle East. According to the regulator, wholesale gas prices in the UK have recently risen to as much as 169 pence per therm, roughly double pre-conflict levels.

Why are wholesale gas prices rising?

According to assessments reported in the article, wholesale gas prices in the UK effectively doubled after US and Israeli attacks on Iran. Restrictions in the Strait of Hormuz, a vital route for global oil and liquefied natural gas flows, have also intensified supply concerns.

  • About 20% of the world’s oil and liquefied natural gas normally passes through the Strait of Hormuz.
  • The UK relies heavily on imported oil and gas, with much of its supply coming from the US and Norway.

Because of this structure, every jump in international markets is reflected more quickly in domestic energy bills. Even though there is North Sea production, a large share of the oil extracted there is shipped abroad for refining.

Pressure is growing on households and small businesses

Consumer Council for Northern Ireland head of energy policy Raymond Gormley said the 19.2% increase is significant for consumers. Gormley said electricity prices have already risen this year and fuel prices remain high, warning that autumn and winter could be difficult for households.

The increase will hit not only homes but also small businesses. Glenn Davis, who runs a restaurant in Larne town centre, said his gas bill is already about £400, while his weekly electricity costs are around £500, underscoring the growing cost pressure.

What support is available?

  • Stormont is expected to open applications next month for a £100 heating oil voucher scheme for eligible households.
  • Under a separate programme, all households are set to receive an electricity bill discount of around £50 in October.

According to the regulator’s comparison, gas costs in Northern Ireland are about £60 higher than in the rest of the UK, but remain several hundred pounds below levels in the Republic of Ireland.

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