Ulster Unionist Economy spokesperson, Mike Nesbitt, has welcomed the news that the Consumer Council is bringing forward proposals for a new way to regulate energy prices. The Strangford MLA said:
“The recent huge hikes in electricity and gas prices has put a focus on the role of the Regulator, but Shane Lynch is the referee, and perhaps we need to look at the rules, as well as a how they are applied.
“There is a clue in the report published by his predecessor, Douglas McIldoon, who identified three years ago that the root of the problem in terms of electricity prices lies with what he called the ‘haphazardly extravagant way in which we procure and reward generation.’ Recent results from the power stations record some 33% profit margins. How do you justify that in the current economic climate?
“We need a new way of doing things, incorporating ideas like Energy Brokering, where communities band together to exercise the sort of bulk-buying power currently exercised only by big business. We need to develop micro- generation, allowing householders to rent their roofs out for photovoltaic generation.
“But above all, we need to address the elephant in the room, which is that 70% of our households are dependent on home heating oil, and this area is totally unregulated. To put that in context, the reliance rate in GB is only 13%. So, this is a massive issue for us. It is also a very big sector, generating a spend of some £585 million annually, yet none of that money is re-invested in the community, there is no cap on return on investment, and no transparency on pricing. Why is it, for example, that with over 60 suppliers offering competition in the Greater Belfast area, the cost of a 900 litre fill in the capital is the highest in the whole of Northern Ireland, despite the fact Belfast homes are nearest to the port where the oil comes in?
“The Ulster Unionist Party calls on the Consumer Council to work with the Regulator to agree a new set of rules that the Assembly can adopt to stop the slide that has seen the number of homes in fuel poverty rise from 36% to at least 44% over the last five years.”