HOUSEHOLDS in Northern Ireland will see £10 cut off their average electricity bill next year as a result of an agreement between the region's two top power companies. Northern Ireland Electricity (NIE) and generator NIGEN said the agreement allowed contracts to be cancelled when capacity was not needed.
The agreement would provide one-off relief of more than £17 million sterling for electricity customers in the year from April 1st, 1997. The agreement also covers extending the life of two of the five units at Power Station West at times when NIE needs it most.
Earlier this year, NIE referred the new price regime proposed by the regulator Ofreg to the British Monopolies and Mergers Commission (MMC). If the MMC approves the price caps, it will cut £40 off the annual £400 electricity bill.
Mr Walter McClay, NIE's supply director, said the company shared the regulator's concern over the high cost of electricity and said it had been working with generators to reduce costs.
Mr David McIlhagger, NIGEN managing director, described the agreement as "a first and important step" to reduce electricity prices and said it secured employment at Power Station West for a further three years. "These may be small steps but NIGEN is committed to working with NIE and the regulator to reduce further the price of electricity in Northern Ireland," he said.
