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Bulk Buying could reduce Ulster Energy Prices
8th June 2010
Energy prices could be reduced for consumers through the co-ordinated bulk purchase of energy on behalf of multiple customers. That's according to a new report, 'People Power' , from Bryson Charitable Group, the Consumer Council and the Northern Ireland Housing Executive.
The launch of the report on 'energy brokering' marks another step in the fight against fuel poverty in Northern Ireland, which is now affecting around one in two households in the province. Providing examples of schemes successfully implemented in other regions of the UK and in other countries, the study highlights the opportunity to replicate some of the best practice, here in Northern Ireland.
Speaking at the launch, Northern Ireland's Social Development Minister, Alex Attwood said, "Tackling fuel poverty has been a priority of my Department in recent years. I welcome this feasibility report into the potential for energy brokering in Northern Ireland which shows that there is a willingness among stakeholders to participate in an energy brokering scheme.
"I thank Bryson Charitable Group, the Consumer Council for Northern Ireland and the Housing Executive for carrying out this study which was a recommendation from the Fuel Poverty Task Force established in May 2008. My Department will soon bring forward legislation that will enable social housing landlords to undertake brokering schemes of this nature."
Commenting on the potential for economic and social policy change, John McMullan, Bryson Chief Executive said, "Bryson has a long and proud history of changing social policy through partnership action and this report is another excellent example of this. In our modern society, access to affordable energy has become a basic human right and the recommendations contained in this report will assist greatly in addressing affordability."
Describing the benefits for social housing tenants, Northern Ireland Housing Executive Chairman, Brian Rowntree, added, "Experience in Great Britain and elsewhere has demonstrated that social housing landlords were able to obtain reduced electricity tariffs by acting as a broker on behalf of tenants in the competitive energy market. Whilst the Housing Executive has been interested for some years in replicating these schemes, existing market conditions made it impractical. Now all that has changed and the Housing Executive looks forward to working with its partners, to try to bring similar benefits to tenants in Northern Ireland."
Commenting on the overall benefits for consumers, Antoinette McKeown, Chief Executive at the Consumer Council said, "With one in two households in Northern Ireland struggling to pay its energy bills, the Consumer Council's top priority is to drive and support initiatives which tackle fuel poverty head on. Energy brokering holds real potential to help consumers in Northern Ireland, who are at the mercy of fluctuating energy and higher than EU average electricity prices. Having examined other areas where energy brokering has been implemented successfully, the Consumer Council is convinced that this report represents a real and significant opportunity which must be fully explored for Northern Ireland consumers.
The Ulster Unionist Party's Social Development Spokesperson Billy Armstrong also welcomed the publication of the report. Billy said, "This report offers some interesting ideas as to how "energy brokering" could help the fight against fuel poverty in Northern Ireland, by highlighting instances where such an approach has worked in Great Britain and Europe.
"I was particularly interested in how the Housing Executive saw potential in such an approach to obtain reduced electricity tariffs on behalf of its tenants. The principle could also be extended to Housing Associations and their tenants.
"I look forward to the Housing Executive, Consumer Council for Northern Ireland and the Bryson Charitable Group making a formal and more detailed presentation to the Social Development Committee."
Copies of the 'People Power' report can be obtained from Noel Rice at the Northern Ireland Housing Executive's Energy Conservation Unit. Call Noel on 028 9031 8525 or e-mail noel.rice@nihe.gov.uk.
