LESLIE Cree, Ulster Unionist spokesperson for DETI this morning expressed his concern following an announcement by Phoenix that they will be increasing the price of the natural gas by 28 per cent on May 1st this year.
Commenting on the issue the North Down MLA said that he was alarmed at the hike in prices but explained that: “Energy prices have been creeping up steadily over the last few months – however this issue does not solely lie with gas, as oil prices have also shot up significantly.”
As part of the DETI Committee, Mr Cree is meeting with Energy representatives this morning and will seek to discuss and address the issue.
“The price increase announced by Phoenix Gas will be greeted with dismay by households across Northern Ireland. I fully recognise the commercial pressures faced by Phoenix as we are living in difficult economic times however I would urge Phoenix to ensure that it does everything possible to assist consumers who face difficulties and, at the earliest possible opportunity in light economic circumstances, reduce prices.”
Mr Cress said: “This is a huge problem which will particularly affect the elderly and people on low incomes. For many they will be faced with the choice of spending money on heating or buying food as many simply will not be able to afford both.”
“This price rise does emphasis the need for the Executive to be considering how it will address the changed economic climate with regards to energy policy. Securing a competitive energy market, energy saving measures, and effective oversight by the energy regulator can all help in the face of rising global energy prices”.
Commenting on possible solutions he added: “Here in Northern Ireland we need to place more emphasis on renewable energy and the Assembly need to be more proactive in relation to this issue. It is a real issue, an issue that going to affect people on a daily basis and that is why we need to deal with it urgently. This is a time when fuel prices are supposed to be falling as we enter the summer months – however these increases mean that people could be faced with as much as a £200 increase in their gas bill per year.”
Explaining the hike in the prices, David Strahan, General Manager of Phoenix Supply Ltd, said “Phoenix, like all energy companies across the UK, is experiencing record high wholesale gas costs. We have been able to hold our price at the current reduced level throughout the peak winter heating period, when customers use most gas, but in the face of such large increases in wholesale gas costs, we have no alternative but to review our prices.”
Concluding, Mr Strahan said: “We understand this increase is unwelcome news, however, our customers can be assured that we are committed to delivering gas at the lowest possible price both now and into the future. If, as we hope, world-wide prices fall, Phoenix will reduce its prices accordingly.”