Report on the Committee's review into electricity policy : Part 1: Electricity pricing, together with the minutes of proceedings of the Committee relating to the report, minutes of evidence, written s

Large industrial and commercial electricity consumers are paying amongst the highest prices in Europe for electricity. This has resulted in the possibility that electricity costs will prevent large companies from being able to expand their businesses in Northern Ireland and, in some cases, may eventually lead to the loss of some businesses. This would result in job losses to the economy and increased electricity costs to both business and domestic consumers. The 17.8% increase in electricity prices for most domestic consumers which came into effect from July 2013 also gives considerable cause for concern. The increase, coupled with the wide fluctuations in electricity prices creates an uncertain environment for consumers, many of whom are already in fuel poverty. The Single Electricity Market Operator should undertake a review to consider how generation costs can be made more transparent and the Utility Regulator should undertake further work to improve the transparency in network charges. The way in which renewable generators are rewarded should be reviewed and the price paid for renewable generation from the price of electricity generated from fossil fuels should be de-coupled. The requirement for a capacity payment mechanism to be in place for any form of electricity generation should also be considered. Mutual Energy must work to ensure that a permanent solution to the faults on the Moyle Interconnector is put in place. Before the NI Sustainable Energy Programme comes to an end, the Executive should plan a further programme to promote and improve energy efficiency for vulnerable consumers