UK Electricity Prices

Lord Rogan Excerpts

Thursday 4th June 2026 Grand Committee

[Lord Rogan (UUP)]

My Lords, I want to make some brief comments in relation to the situation in Northern Ireland.

As noble Lords may be aware, energy prices in Northern Ireland are not controlled by the energy price cap. We all remember that global prices of gas, electricity, oil and other fuels began to rise dramatically in the summer of 2021. Prices then shot through the roof after Putin’s illegal invasion of Ukraine in February 2022. Later that year, the Conservative Government provided support for customers in Northern Ireland, which resulted in the largest electricity supplier in the Province cutting prices in November to a rate below those in the rest of the United Kingdom. However, a reduction in that support from April 2023, and its removal from July 2023, led to price rises in Northern Ireland. Since September 2023, the cheapest prices from Northern Ireland’s largest supplier have been higher than prices under the cap in the rest of the UK.

All Northern Ireland households will shortly receive a £30 annual reduction on their electricity. On the face of it, this is welcome news, until you learn that households in Great Britain will receive £150 per year. I understand that the discrepancy is because one of the two environmental levies being removed from bills by the Chancellor of the Exchequer does not exist in Northern Ireland. However, given the higher price of electricity in the Province which I have just explained, surely that should be taken into account as a means of redressing the current cost imbalance between the two parts of the kingdom.

There is another problem. According to Northern Ireland statistics, approximately 61% to 68% of households in the Province use oil rather than gas as their primary method of central heating. This equates to roughly 500,000 homes, with the reliance on heating oil jumping to over 80% in rural areas. An analysis by the Consumer Council for Northern Ireland found that, in March, following the US-Israeli attack on Iran, heating oil prices in the Province rocketed by 92%, with 500 litres costing consumers an eye­watering £627. I ask the Minister to consider what further support His Majesty’s Government can make available.

Finally, a word on business. While electricity prices for Northern Ireland household consumers are high, the situation for local firms is equally challenging at best, given that large energy users currently pay around 60% more than the EU median. Businesses in the Province are already tied up in knots, with additional costs caused by the ongoing Irish Sea border fiasco. Last month, Trade NI—the alliance of Hospitality Ulster, Retail NI and Manufacturing NI, representing the three largest sectors of industry and the majority of businesses in Northern Ireland—sent a delegation to Westminster. While here, they met Ministers and other key decision-makers to outline some of the practical interventions needed to support Northern Ireland’s competitiveness. I am unaware of whether the Minister was part of these discussions but, if not, I gently ask that he receives a full brief from his officials on the initiatives raised and considers how he and his department might best assist Northern Ireland.