Enterprise Minister Jonathan Bell has met with NIE Networks, System Operator for NI (SONI) and the Utility Regulator to discuss issues surrounding energy costs for businesses in Northern Ireland.
The Minister said: “Energy policy is about balancing the need to keep the lights on and the costs down in a sustainable manner. Industry experts tell us that we have enough secure power to meet our needs in the medium term, that energy costs are at a six year low and that we’ve exceeded our challenging renewable energy targets.
“I am, however, all too aware of the concerns that are being expressed about energy costs for business, particularly in the context of recent manufacturing job losses. That is why I called a meeting with the Utility Regulator, NIE Networks and the System Operator for NI to look at what more can be done. For example, can market reform deliver lower wholesale costs; can we afford to subsidise more renewable generation; and are we making the most of our natural resources.
“The fact that the main element of electricity costs – wholesale prices – is set on global markets puts a significant constraint on what we can do. One thing that would make a huge difference is a second North-South Interconnector, which could reduce annual electricity curtailment costs by €20million.
“We all need to do everything we can to get behind bringing it to fruition.
“While energy costs are of course more significant for some businesses, our overall business costs are lower than our neighbours – on average about 84% of those in the UK and 95% of those in the Republic of Ireland. In most cases, lower labour and property costs counteract the disadvantages on energy and transportation costs.
“Electricity bills for our largest users are lower than the UK average at the moment, while most people’s electricity bills are around the EU average and a recent report ranked NI 17th out of 151 countries in terms of quality of electricity supply. We have some of the cheapest gas prices in Europe and the Executive is already putting nearly £30million to extend the gas network so more people and businesses will have greater choice of fuel.”
Minister Bell added: “I have listened carefully to the concerns expressed on energy costs but I don’t want anyone to think there is a quick fix. Taking costs off one group means increasing them for others and we currently have the highest level of fuel poverty in the UK. We also need to meet EU rules to share costs fairly.
“This latest meeting was just part of an ongoing engagement and is imperative that we all continue to work together to clarify our options, make the difficult choices that lie ahead and to ensure doing business in Northern Ireland remains both affordable and profitable.”
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