You might have seen headlines this week stating that households are set for lower energy bills thanks to changes to the “price cap”.
Before you assume your bill is about to drop, here’s the important bit:
The energy price cap does not apply in Northern Ireland.
So what is the price cap?
The price cap is set by Ofgem and only applies in Great Britain – that’s England, Scotland and Wales. It limits what suppliers can charge customers on standard variable tariffs.
When the cap goes down, millions of households in Great Britain see their bills fall. And the reverse is true if the price cap is increased.
But Northern Ireland operates under a different system.
How energy pricing works in Northern Ireland
In Northern Ireland, the Utility Regulator approves the tariffs charged by Power NI (electricity) and by SSE Airtricity Gas and firmus energy (gas). Rather than a quarterly price cap like in Great Britain, these tariffs are reviewed individually through a regulatory process. Other suppliers in the local market are not price-regulated and will typically try to compete by offering lower rates.
That means:
- We don’t follow Ofgem’s price cap changes
- A “cap cut” or ‘increase’ in Great Britain does not impact bills in NI
- Local prices move based on wholesale costs, network charges and decisions specific to our market
So when you see headlines about the price cap being lowered, they are not talking about Northern Ireland households.
Will bills fall here?
Possibly: but for different reasons.
If wholesale energy costs fall, NI suppliers can reduce tariffs. We’ve seen that happen before. But it won’t be because of the Great Britain price cap changing. And there charges and levies applied to our tariffs here will be different to those applied across GB
Different system. Different regulator. Different outcome.
What should NI households focus on?
Rather than waiting for a GB announcement that doesn’t apply here, the best way to reduce costs locally is:
- Check your current tariff
- Compare available deals
- Make sure you’re not sitting on an outdated or expensive rate
We track Northern Ireland-specific tariffs and highlight the best value options each month in our newsletter.
Because when it comes to energy pricing, local detail matters.
