On 1st May 2008 the natural gas price will increase by 28%. This is as a result of one reason: the wholesale cost of gas has reached record highs since Phoenix reduced tariff prices in March 2007.
David Strahan, General Manager of Phoenix Supply Ltd, said “Phoenix, like all energy companies across the UK, is experiencing record high wholesale gas costs. We have been able to hold our price at the current reduced level throughout the peak winter heating period, when customers use most gas, but in the face of such large increases in wholesale gas costs, we have no alternative but to review our prices.”
Mr Strahan continued: “In arriving at this level of increase, we have consulted extensively with the Northern Ireland Authority for Utility Regulation, the Consumer Council for Northern Ireland and the Department for Enterprise, Trade and Investment.”
Further Mr Strahan stated: “Natural gas customers can remain confident that the price they are paying for natural gas still remains extremely competitive compared to other fuel choices. In the past year alone, the price heating oil customers pay has increased by over 66%, and even after this increase, heating oil will be 20% more expensive than natural gas.”
Concluding, Mr Strahan said: “We understand this increase is unwelcome news, however, our customers can be assured that we are committed to delivering gas at the lowest possible price both now and into the future. If, as we hope, world-wide prices fall, Phoenix will reduce its prices accordingly.”