Hope for lower January power bill

Electricity prices may be reduced in January, the utility regulator has said.

Iain Osbourne said he was "hopeful" of making a decision before Christmas.

There was a 14% price rise in July and a 33% increase in October. An independent review on Thursday said it was "justified but unsatisfactory".

The Consumer Council said NI bills were £114 a year more than those in Britain. "People are paying dear this winter," said chief executive Eleanor Gill.

The council said it backed the findings of the review, carried out by former regulator Douglas McIldoon, that NIE Energy is allowed more flexibility in its "forward buying" of power.

'Confused and contradictory'

Mr McIldoon said that, while October's price increase was "an inevitable outcome given the rising fuel prices", there was scope for making changes to how electricity is purchased.

"Electricity prices are higher than they need to be because policy is confused and contradictory," said Mr McIldoon.

"Unless there is further development the present market mechanisms will neither drive down prices nor deliver the desired transition to a securer, less fossil fuel dependent electricity supply industry," he added.

Eleanor Gill said Mr McIldoon's report "throws down the gauntlet for change".

"Times have changed dramatically for consumers and it is necessary that the regulatory system changes too if it is to protect consumers' interest and offer better value for money," said Ms Gill.

Stephen McCully of NIE Energy said the company "looks forward to being fully engaged in the wider strategic energy debate which will follow this report."

He added: "I would like to assure our customers that if, as we hope, lower fuel costs are realised, NIE Energy will pass on the benefit to customers as soon as we can."

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