Power NI Announces 4.8% Price Cut For Domestic Energy Customers
Power NI have announced a price cut of 4.8% to its customers from July 1st. This will save consumers around £30 a year.
The announcement will help 450,000 customers across Northern Ireland.
“From 1 July, our customers will be paying significantly less than households in the Republic of Ireland; GB and across Europe.”Power NI’s Managing Director, Stephen McCully
However, the BBC reports that a business group has said that the price cut is “too little too late”.
The main argument is around the wholesale price of oil falling to historic lows therefore the 4.8% reduction by Power NI is being looked at as being insignificant by the business group.
The other complaint is that this only impacts Power NI’s domestic energy customers, whilst business energy customers will not see this reduction.
The response back from Power NI is that most business energy customers are on variable rate tariffs, and will therefore see cheaper energy bills due to the drop seen in wholesale energy prices.
However, a major concern for energy suppliers is that oil prices will likely start to increase again at some point as oil production has been reduced to control the price of oil.
This will then cause some further disruption in hiking up energy prices and at this point it’ll be likely passed on to consumers.