Northern Ireland gas price hike announcement expected, warns regulator

A gas price hike announcement is expected next week, a Stormont committee has been told.

Two weeks ago, the Utility Regulator warned that unprecedented rises in the global wholesale market could mean a rise of up to 50% from December.

John French told the economy committee that any announcement has to be made 21 days before it takes effect.

Gas suppliers' profits are regulated by the Utility Regulator and capped at a maximum of 2%.

The price of gas has jumped significantly from about 40 pence per therm to a record high of £4.10 in October and is currently around £1.90.

50% of a household gas bill is made up of wholesale costs so this will translate into bigger bills for consumers.

Global supply issues include a significant reduction in the amount of gas from Russia into Europe.

Mr French also warned this gas price crisis is "likely to last at least 18 months".

The Consumer Council also spoke to the committee on the ongoing energy price crisis, raising concerns for low-income households here.

Chief Executive Noyona Chundur told the committee that almost one in five households here (18%) are in fuel poverty.

She said that only 37% of homes in Northern Ireland are connected to the gas network, compared to 85% in England.

Two thirds of homes here use home heating oil, a market which is not regulated.

However the Consumer Council tracks the price of home heating oil, which it suggests is at its most expensive in about seven years.