SSE Airtricity to Raise Gas Prices by Nearly 19%
SSE Airtricity, Northern Ireland's largest gas provider, will raise its prices by nearly 19% starting October 1. This change will impact about 200,000 domestic and small business customers. The typical household in the greater Belfast and west gas network areas will see their annual gas bill increase by nearly £172.
The company said the price hike is due to "unprecedented levels of volatility in global energy markets and higher wholesale gas prices." SSE noted that wholesale gas prices in the UK have nearly doubled since conflict began in the Middle East. This increase follows military actions by the U.S. and Israel against Iran. Colin Broomfield from the Utility Regulator pointed out that rising wholesale gas costs are a major reason for the increase. He said, "This will be difficult news for many households and small businesses, particularly at a time when wider cost pressures remain a concern."
The conflict in the Middle East has affected energy prices worldwide for the past six months. Wholesale gas prices have reached 169 pence per therm, which is double the prices before the conflict started. The Strait of Hormuz, a key shipping route for oil and liquefied natural gas, has been impacted, limiting global supplies. About 20% of the world's oil and liquefied natural gas usually passes through this waterway.
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The price increase is likely to affect consumers in Northern Ireland, especially in the gas sector. Higher energy costs will add to overall inflation. Investors will be on the lookout for further developments in the Middle East that could impact global energy prices and supply chains.
Based on reporting by: bbc.co.uk