16.01.2009

firmus energy announces new tariff and price guarantee against oil

firmus energy, the company bringing gas to 10 towns and cities across Northern Ireland, today announced their first price rise in three years. The 20.7% increase for domestic users equates to less than 3% per year, when inflation of around 12% over the same period is taken into consideration. The increase equates to less than £1.50 a week for the majority of their domestic customers.

The company has also announced a price guarantee against oil and measures to protect vulnerable domestic customers this winter.

Mark Prentice, General Manager for firmus energy, said: “In January 2006 we capped our prices for customers until the end of 2008.  Over the last 3 years our prices have remained flat through a time of huge volatility in wholesale prices, during which other energy providers have increased their prices by as much as 75%.

“We believe we were the only energy company in the UK not to have increased our prices during this time but unfortunately we are unable to keep our customers insulated against wholesale energy price rises indefinitely. 

“We understand that it is important for consumers to continue to know that they’ve made the right decision to switch to natural gas – that’s why we guarantee that, across the year, our natural gas price will continue to be cheaper than oil.  In fact over the last 9 months, natural gas has been 37% cheaper than oil, ensuring an average household has saved over £300 per year on their heating and hot water bill compared to oil. (see note 4)

We use an independent research company to check local oil prices every week and, when we look at our tariff again in 9 months time in September 2009, we will ensure that our price for gas will be cheaper than oil, based on average oil prices between now and September.”
 
The firmus energy price cap finished at the end of 2008 but was extended until 1st February 2009.  Mark Prentice explains, “We know that traditionally January is one of the coldest months and, unlike many other utility companies who put up prices at the start of winter, we wanted to give customers the benefit of cheaper tariffs for as long as possible. 

“We have listened to the calls from elected representatives and consumer groups for energy companies to do their bit to protect the most vulnerable energy consumers this winter.  As a result, we have decided to effectively delay the price increase for our elderly, disabled or chronically ill customers who were registered on our firmuscare* scheme as at 1st January 2009.  These customers will be credited with £10 worth of free gas to ensure that the impact of this rise is deferred into March,” he added. (see note 5)

On 1st February, small commercial tariff prices will increase by 31.5%, reflecting the increase in wholesale gas costs over the last three years.

Mark continues, “Even after this increase, our domestic gas price will be on average 24% cheaper than average home heating oil prices over the last 9 months and our small commercial tariff will be on average 28% cheaper than gas oil prices over the last 9 months – equivalent to a saving of around £3000 per annum for an average sized small business user. (see note 6)

 “We will next review our gas prices in September to both ensure that our customers benefit if wholesale prices continue to fall and to maintain our price promise against oil.  Our customers can also be reassured that firmus energy continues to offer the cheapest domestic and small business gas tariffs in Northern Ireland. (see note 7)  

“Customers looking for advice on their gas bills or direct debit payments going forward can contact our Customer Care team on 08456 08 00 88,” he concluded.

ENDS

For further information, please contact Gwynneth Cockcroft or Suzie Fisher of Davidson Cockcroft Ltd on 028 9040 2296.

notes to the editor

  1. firmus energy is developing a new gas network in 10 towns and cities across Northern Ireland – Londonderry, Limavady, Ballymoney, Ballymena and Coleraine in the North West and Antrim, Craigavon (including Portadown and Lurgan), Banbridge, Newry and Armagh along the SN pipeline.
    firmus energy currently has over 500 businesses and around 4000 domestic customers connected for natural gas.
  2. The new tariff means that from 1st February, pay-as-you-go customers, who tend to use a lower annual consumption of gas, will see an increase of £1.47 per week on average. More than 60% of firmus energy domestic customers use a pay-as-you-go meter as a way of paying for their gas.
  3. Direct Debit customers, in an average three-bedroom house will pay around £1.74 per week more for their gas.
  4. Over the last 3 years the firmus energy domestic tariff has ensured that, on average, natural gas has been around 20%a cheaper than oil. Over the last 9 months, natural gas has been 37%b cheaper than oil, ensuring an average household has saved around £300c per year on their heating and hot water bill compared to oil.
    1. Based on average oil price of 3.94p per kWh and firmus energy price of 3.23p per kWh
    2. Based on an average oil price of 5.1p per kWh, derived from a sample of quotes obtained from independent oil distributors across the NW & SN towns over the nine month period April- Dec 2008
    3. Based on average usage of 16017kWh per annum and average oil price of 5.10p per kWh
  5. firmuscare customers are those customers who are registered with firmus energy as being over 60 years old and living alone or those who are disabled or chronically sick and living alone.
  6. Based on an average Gas Oil price of 5.68p per kWh and 5.1p per kWh for home heating oil, derived from prices from independent distributors the NW & SN towns over the nine month period April - Dec 2008.
  7. firmus energy only supplies domestic households in the 10 towns and cities along the NW and SN pipelines. The new firmus energy domestic tariff is around 10% lower than domestic prices in Greater Belfast (as at 1st February 2009).
  8. Pay-as-you-go customers can also be reassured that their tariff continues to be firmus energy’s best available price, offering the same tariff as that of a direct debit customer.
  9. The figures below show the input price per kWh, including VAT, of the main competing fuels, using current and proposed tariffs except for oil, where the future price is unknown. This is based on the unit price and does not include system efficiency, which tends to improve further the cost advantage of natural gas over other fuels.

 

Average Consumption - House Type Annual Gas Bill Vs Oil - tariff prices at 1 February 2009

 

 

 

kWh

therms

Credit Tariff (by DD)

firmus energy

Oil*

Economy 7

LPG

 

 

1 Bed Flat, Bungalow, Terrace, Detached

6,161

210

£251

£314

£526

£384

 

 

2 Bed Flat, Terraced

9,303

317

£371

£475

£772

£579

 

 

2 Bed Bungalow, Semi-detached, 3 Terraced/Town House

13,744

469

£540

£701

£1,119

£856

 

 

3 Bed Bungalow, Semi-detached, 4 Terraced/Town House

16,017

547

£626

£817

£1,296

£998

 

 

3 Bed Detached

18,087

617

£705

£923

£1,458

£1,127

 

 

4 Bed Semi-detached, Detached

19,383

661

£754

£989

£1,559

£1207

 

 

4 Bed Detached

26,117

891

£1,010

£1,333

£2,086

£1,627

DISCLAIMER

Consumption based on indicative figures provided by the Energy Saving Trust DD payments may vary depending on individual usage

* In the absence of a tariff, the price for oil is the average for the nine months Apr to Dec 2008. * In the absence of a tariff, the price for oil is the average for the nine months Apr to Dec 2008.