Firmus 33.57% gas price hike in Derry and Ten Towns Network from today

Firmus, which supplies gas to Derry and other areas of Northern Ireland, has blamed further increases on global wholesale gas prices for the huge hike, which comes at a time when local people are already also facing significant electricity, oil and food price rises.

The latest increase to the natural gas tariff applies to the Ten Towns Network area, which includes Derry and Limavady. However the tariff increase will not apply to Belfast Firmus customers.

The Utility Regulator in the north has previously said the Ten Towns and Greater Belfast areas are ‘two separate markets, with different distribution network operators and different network use of system costs’.

Firmus said today’s increase on tariffs here will mean an extra £5.95 per week on to the average household bill here.

The Ten Towns Network area includes Antrim, Armagh, Ballymena, Ballymoney, Banbridge, Coleraine, Craigavon (including Lurgan and Portadown), Limavady, Derry, Newry, and more than 25 other towns and villages in the surrounding areas.

Dr David Dobbin, Chairman of firmus energy, said: “Unfortunately, due to the sustained high prices in wholesale gas markets we have had no option but to make a further increase in our gas tariff.

“Very low gas stocks; reduced Russian supplies and concerns about the Ukraine situation are all combining to keep European gas prices high. The market crisis has been well publicised, and markets look increasingly like they are going to remain high for some time. As we have previously stated this is not just a firmus issue, but a challenge faced by every local and national supplier of gas and electricity all of whom are affected by the huge upsurges which have taken place in wholesale gas and energy costs.

“We know this is another unwelcome increase which will have a disproportionate effect on those of our customers who are the most vulnerable. We have been providing financial support to the Department for Communities scheme to help those most in need and will continue to do so. If any of our customers feel that they require further support, they should contact us directly to see how we can help.”

The price increase was reviewed by Utility Regulator, in consultation with the Department for the Economy and the Consumer Council for Northern Ireland.

As part of this process the Utility Regulator scrutinised firmus energy’s actual costs to supply gas to homes and businesses in the Ten Towns Network area.

Commenting on this increase, John French, Utility Regulator Chief Executive said: “In late December 2021, we received a submission from Firmus Energy to undertake an ad-hoc review of their regulated Ten Towns tariff for domestic and small business consumers. The review took place against a continuing increase in wholesale gas prices, which have risen significantly since Firmus Energy’s last tariff increase on 3 December 2021.

“We have now analysed and evaluated Firmus Energy’s submission and consulted with the Department for the Economy and the Consumer Council for Northern Ireland. This review has unfortunately concluded that a 33.57% increase from 24 February 2022 is needed to reflect the ongoing and exceptional price spikes that have been experienced in the global wholesale market.

“This will regrettably mean that the average annual household gas bill in the Ten Towns licence area will increase to £1,293 per year.”

Customers seeking advice on their natural gas bills or direct debit payments should contact the firmus energy Customer Services team on 0330 024 9000. Telephone lines are open 24 hours a day, 7 days a week. Free and independent advice on how to save energy please contact NI Energy Advice Line on 0800 111 4455.

Earlier this month a new group Derry Against Fuel Poverty staged a well attended rally in the city centre amid the growing cost of living crisis.

A spokesperson for the group said: “People in Derry, and further afield, have been really struggling to get to grips with the cost of living increases now for well over a year. We were forced to absorb three gas price increases by Firmus in 2021 with a fiercely unwelcome fourth slated for 24th February.

“Cumulatively, by the time the 24th February price increase kicks in, Firmus Gas customers in Derry will have been confronted with a 194% price hike inside twelve months. This means that, on average, people will have had to find an additional £70 a month to heat their homes from one winter till the next. That is, on average, an extra £800 per year to heat their homes. It is absolutely scandalous and an impossible task for many.”

The Journal has requested further information as to why these gas price increases are being applied in some areas in the north and not others.