Consumer and industry watchdogs have welcomed the decision by Northern Ireland Electricity (NIE) to freeze prices, and pay out £11 million sterling in rebates to its customers in the region.

The company has said that there will be no increase in tariffs because of lower than expected fuel prices last year.

New electricity tariff structures are also being introduced which could mean price reductions of up to 30 per cent for some consumers.

NIE's managing director, Mr Harry McCracken said that customers had told the company that the old tariff system was too complicated, and that standing charges were unfair. "We have taken those messages on board," he said, "and have responded with this new package."

The electricity regulator, Mr Douglas McIldoon said that NIE should be congratulated on the new tariff structures, which come into effect in July.

"It means that we probably have the best tariff structure in the UK for encouraging energy efficiency," he said.

But he said that the overall price differential with the rest of the UK would continue to grow, and that Northern Ireland's electricity bills would be higher than they needed to be unless further changes were made to the industry's cost structure.

This view was echoed by the chairman of the Northern Ireland Consumer Committee for Electricity, Ms Nuala O'Loan, who gave the new announcement a guarded welcome.