NI power announce 18%price hike.....

ihateyes

A massive increase.... is this an indication of what might happen on the mainland?

http://www.bbc.co.uk/news/uk-northern-ireland-22616090

Wywth

ihateyes wrote: »

A massive increase.... is this an indication of what might happen on the mainland?

http://www.bbc.co.uk/news/uk-northern-ireland-22616090

Or is this an indication that NI powers are just catching up with mainland prices?

"We were able to cut prices last year when many other UK electricity suppliers were raising theirs...

"Prices are roughly back to what they were in 2011, since the previous cut is unfortunately now cancelled out."

ihateyes

Wywth wrote: »

Or is this an indication that NI powers are just catching up with mainland prices?

No.... Prices in Northern Ireland were and still are more expensive than the mainland. The cut last year brought them more in line with mainland prices.

Wywth

What I meant was that the price differential is now reverting to what it historically was.

Background to differences in markets and prices between GB and Northern Ireland

When comparing prices between GB and Northern Ireland it is important to recognise that fundamental differences exist in both markets. Firstly prices in NI are set by the Northern Ireland Utility Regulator in an annual tariff review and can change significantly from year to year (see table below) as happened in 2008/2009 where regulated electricity tariffs were 24% higher than the GB average. The graph also demonstrates that the recent price reduction in Northern Ireland brings it into line with GB prices after a four-year period of higher prices. A situation where the Power NI tariff is lower than the GB average is unlikely to last for more than 1 tariff review because an under recovery of revenue will be added to the next tariff.

http://www.bbc.co.uk/programmes/b006mg74/features/electricity