Mixed feelings from consumers as electricity discount to be given to NI households

ByJohn CampbellEconomics and business editor and Holly FleckBBC News NI

Updated 3 hours ago

A one-off electricity bill reduction will "make a difference" to some while others believe it is "nothing in comparison" to price rises.

Households across Northern Ireland will get the one-off £63 reduction in electricity bills from next month and it will be applied automatically without the need for an application.

Speaking to BBC News NI in Belfast city centre, Alison said the discount "wouldn't make a lot of difference over the course of a year".

She added that more could be done, but it is welcome at this time of year whenever it is coming up to Christmas.

James said when you count up the bills every week for a year it is "nothing in comparison" to price rises.

"It's a wee bit of hypocrisy when they're giving you back the change basically out of what they're taking," he said.

"They're taking thousands off you in gas, electric, heating oil."

He added that there has also been an increase in the cost of commuting, when fuel and parking is taken into consideration.

"It just doesn't make sense anymore. Everything is so expensive. So it will mean nothing really."

How it works

The reduction is the local outworking of two schemes which apply in Great Britain, which has a separately regulated electricity market.

The schemes are being funded by the UK government.

Bank payment customers will have their bills automatically reduced while pay-as-you-go customers will receive £63 in credit when they top up their meter.

The only complication for pay-as-you-go customers is they should not buy more than £112 of credit if they want to get the discount all in one go.

That is because meters are set up to take a maximum payment of £175. Top ups over this value means the £63 payment will be split over a subsequent top up.

'It will make a difference'

Jane said the discount "would make a lot of difference" to her, as despite having a coal fire the coal is also expensive.

She said she doesn't use electric blankets and electric fires, she puts on extra layers to stay warm, so the discount would be helpful.

Jane added that she will spend the money on "more luxurious food and keep myself healthy".

Ed said the discount is "not an awful lot to be honest but £63 is still £63".

"I imagine it will mean more to other people but I won't turn it down or send it back, every bit counts in this current climate," he added.

Discount will 'provide some help for families'

The Economy Minister Dr Caoimhe Archibald said the money would "provide some help for families as winter kicks in and energy bills rise".

She said the money would "provide some help for families as winter kicks in and energy bills rise".

Her department agreed the NI scheme with the government and will deliver it to consumers.

Heating oil voucher

Last week applications opened for a separate means-tested scheme to provide a £100 voucher to some heating oil users. It is jointly funded by Stormont and the UK government.

The electricity scheme reflects two policies which apply in GB: a temporary cut in VAT and the removal of some consumer levies.

The UK government decided not to apply the VAT cut in NI as it would have required agreement with the EU which it thought would lead to delay.

There are due to be similar bill reductions in the next two years but the size of those will depend on whether the government continues with the VAT cut which was introduced as a temporary measure.

It comes as energy prices continue to rise, driven by the US conflict with Iran.

Data from the NI consumer council suggests 500 litres of home heating oil currently costs around £560, more than twice the price compared to this time last year.

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