Foster welcomes Gas price review

Energy Minister Arlene Foster welcomed today’s announcement by the Utility Regulator to review Phoenix gas prices.

The Minister said: “I have discussed the proposed review with Iain Osborne, the Utility Regulator Chief Executive, and we agreed that a gas price review is appropriate at this time.”

Arlene Foster continued: “Recent falls in wholesale gas and oil prices have brought changes at the petrol pumps and may have raised consumers’ expectations of a reduction in their energy bills. However, gas companies, such as Phoenix, advance purchase a large proportion of their gas for the winter period, hence a gas price reduction cannot be assumed.’’

The Minister concluded: “While there is no guarantee of a cut in gas prices I commend the Utility Regulator for acting swiftly to review prices and for acting in the best interest of the consumer to ensure that any fall in wholesale prices is passed on to householders as soon as is practicable.”

The Department will continue to co-operate with the Utility Regulator, Consumer Council, and the industry in relation to the planned review of Phoenix gas prices.

An independent review of the electricity price setting process was initiated by the Utility Regulator on 18 September. This is being carried out by the former regulator, Douglas McIldoon, with a report expected in mid November 2008.

Notes to Editors:

1. Phoenix Supply raised gas prices by 28% from 1 May 2008 and by 19.2% from 1 October 2008.
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