Belfast News: Phoenix Gas Hike!

Phoenix Natural Gas has announced that it is to increase its prices by a massive 39%, on the 1st May 2011. The price hike will effect the company's domestic and small business customers.

Chief Executive of the Utility Regulator Shane Lynch recognised the impact the rise would have on household budgets, indicating the 'increase is wholly attributable to rising wholesale gas costs'.

Editorial

Can it be acceptable for one of Northern Ireland's main Gas supplier, to hike it prices by over 1/3 in a single rise. Is it acceptable to have a regulator, who has approved such a rise, given that for many customers gas was forced on them by their landlord the Northern Ireland Housing Executive.

This rise will impact customers on the eve of the Northern Ireland Assembly Elections and the electorate should not be shy in holding all new representatives to account. With the credit crunch biting, people are now sick to death of words and wordplay, it is time for our representatives to act.

Phoenix Natural Gas has been condemned by many for such a large rise, a rise which is likely to see the average household bill exceed £580 a year and a rise, which may still backfire should customers defect to new market competitors. The danger for Phoenix is that if customers change to its competitor Firmus, who are holding consumer prices until the end of September, they may never come back, given past NI consumer behaviour,.

The Consumer Council CEO, Antoinette McKeown commenting on the story said, 'It is unfortunate that those who are on pay-as-you-go tariffs are unable to switch supplier'. It is the view of Simply Belfast, that the new Assembly need to take immediate steps not only to address this imbalance but to remove this company's ability to charge a minimum usage tariff.

Last Updated: 21st April 2011