SSE Airtricity will increase its natural gas prices for households and businesses across the North of Ireland by 39% from April.
It will add about £244 onto the typical household bill, which the Consumer Council says is the biggest rise in gas prices in their network since May 2011.
The move will affect about 186,000 gas customers across the North of Ireland, including homes in Co Derry and Strabane.
It comes as home heating oil has jumped by almost £200 in a week – a 500 litre fill of oil could not cost as much as £519 – up £6 on Thursday.
SSE Airtricity said the continued pressure on global energy markets has had a significant impact on energy suppliers’ ability to keep prices down.
Their tariffs are independently scrutinised and approved by the Utility Regulator in consultation with the Consumer Council and the Department for the Economy.
Andrew Greer, SSE Airtricity general manager, said: “We understand this news will be unwelcome, if not unexpected, to our customers, given the extensive media focus on wholesale markets over the last six months.
“The cost of purchasing natural gas on the wholesale market has reached record highs this winter and regrettably, a proportion of this must be reflected in our prices,” he added.
“In March 2021 gas cost around 50 pence per therm, today that cost is around £2 per therm after hitting as high as £4.50 per therm late last year.”
Raymond Gormley of the Consumer Council said the company had no option but to increase costs.
He also said the invasion of Ukraine will push costs up.
“Energy prices could be volatile for a number of weeks and will remain high for the foreseeable future,” he added.
“This situation shows the importance of the Department for the Economy’s energy strategy that aims to tackle affordability in the long term and move us away from our dependence on fossil fuels.”
John French, chief executive of the Utility Regulator, said the conflict in Ukraine has significantly exacerbated the volatility and price movements within the market.
“The cost of wholesale gas has increased significantly over the last seven months largely due to Russia reducing the supply of natural gas into Europe,” he said.
“However, today’s announcement does not take into account the further upward wholesale price pressures we have seen since Russia’s invasion of Ukraine.
“Regrettably, it is highly likely that a further increase to tariffs will be needed at some point.”
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