Northern Ireland Electricity has welcomed its referral to the Monopolies and Mergers Committee for refusing to accept price cuts proposed by the electricity watchdog.

The company said it shared the desire to see lower prices in Northern Ireland but added: "NIE cannot be asked to bear the full burden of achieving this." To do so would result in a serious impairment of the company's ability to finance and carry out its operations.

Electricity prices in Northern Ireland have continued to rise while those in the rest of the UK have been falling. NIE accepted that prices could be cut and had put forward proposals which, it said, would bring immediate cuts in customers' bills of £35 a year while maintaining its ability to continue to improve customer service.

The regulator wants bigger cuts and has referred the matter to the MMC. NIE said it welcomed the opportunity to put its case and said it was widely accepted that it was the price of electricity generation that was the problem. (PA)