Northern Ireland’s largest provider of natural gas, SSE Airtricity, is to increase its prices by almost 19% from 1 October for its 200,000 domestic and small business customers.
It means the annual gas bill of a typical household in the greater Belfast and west gas network areas will increase by almost £172.
The company said “unprecedented levels of volatility in global energy markets and higher wholesale gas prices” had led to the price rise.
Wholesale gas prices in the UK have effectively doubled since the US and Israel began their attack on Iran.
Colin Broomfield from the Utility Regulator said the increase would be “difficult news for many households and small businesses, particularly at a time when wider cost pressures remain a concern”.
“The main reason for the increase is the sustained rise in the wholesale cost of gas, due to the ongoing conflict in the Middle East.
“The Iranian conflict has continued to impact energy prices globally for the past six months.
“In recent weeks, we have seen the wholesale price of gas reaching 169 pence per therm. This is twice as high as pre-conflict prices.”
The Middle East conflict sent global oil prices soaring as it effectively closed the Strait of Hormuz – one of the world’s key water transport routes for oil, liquid natural gas and other essential commodities – limiting global supplies.
About 20% of the world’s oil and liquefied natural gas normally passes through the waterway.
The UK is heavily reliant on oil and gas imports, with the majority coming from the US and Norway.
The price of oil on the global market determines how much the UK pays for it.
Although the UK does get some oil from the North Sea, most of that is exported for refining elsewhere.
