Households in Northern Ireland will see a unit price reduction for electricity and gas of up to 17p/kWh and 4.2p/kWh respectively, under the Energy Price Guarantee scheme.
The government has unveiled these new details following the announcement of the scheme on 8 September by Prime Minister Liz Truss.
On 12 September, the Department of Business, Energy and Industrial Strategy (BEIS) set out how the scheme would apply to those in England, Scotland and Wales, and flagged that it was working with NI Utility Regulator and NI energy suppliers amongst others to ensure the same amount of support is delivered to households in the nation as in the rest of the UK.
Like the British equivalent, the Northern Ireland Energy Price Guarantee will see suppliers automatically apply the unit price reduction to domestic energy bills, with no need for consumers to take action to receive the financial support.
It will also include the temporary shift of environmental and social costs, including green levies, from gas and electricity bills. The Exchequer will cover this cost, around £150 per household, over the next two years.
The scheme in Northern Ireland will start in November instead of October, but the government has noted it will ensure the support is equivalent to that provided in GB by backdating that provided to October bills as well.
A typical household in England, Scotland or Wales will have their energy bills set at £2,500 for two years from 1 October. For those on a standard variable tariff, direct debit bills will be limited to 34.0p/kWh for electricity and 10.3p/kWh for gas, inclusive of VAT, from 1 October.
Those on fixed tariffs at a higher rate in GB than the new price freeze due to the recent energy price rises, will see their unit prices reduced by 17p/kWh for electricity and 4.2p/kWh for gas from 1 October.
Households in Northern Ireland will also receive a £400 discount on bills as part of the Northern Ireland Energy Bills Support Scheme (NI EBSS). This matches the support set to be rolled out across the rest of UK from October.
The Energy Bills Support Scheme was announced by then-Chancellor Rishi Sunak in May, along with a windfall tax of oil and gas majors to support the cost.
On Friday 23 September, current Chancellor Kwasi Kwarteng is set to unveil a mini budget that explains how the Energy Price Guarantee and other support measures such as Energy Bill Relief Scheme – the details of which were also announced today – will be supported.
However, the Conservative party has repeatedly ruled out another windfall tax to cover the support. The Energy Price Guarantee is expected to cost upwards of £100 billion, and the Energy Bills Support Scheme £25 billion.
These prices will depend on how high wholesale prices reach over the next two years, with the market remaining particularly volatile.
