Phoenix Gas Cuts Costs for Customers

Phoenix gas announced today that the price of household gas for its customers in Northern Ireland will drop by 19% on 1st October 2009.

This will translate into a saving of £104 per year on the current average domestic gas bill. It is the second price reduction Phoenix customers have enjoyed since the beginning of 2009 The reductions are particulalry welcome after householders saw their bills increase by around 50% in 2008.Phoenix Supply General Manager David Strahan said the company was committed to passing on savings to consumers.  "We are delighted that Phoenix is the first major UK gas supplier to be able to announce two substantial price reductions this year," he said.

 
The Utility Regulator said it had acted quickly to make sure recent falls in wholesale gas prices were passed on.  "The reduction reflects a further fall in wholesale gas costs, largely caused by the economic downturn and improved gas supply infrastructure into the UK," said Chief Executive Iain Osbourne. "Gas customers in the Greater Belfast area are now paying bills that are back to 2006 levels, and that compare favourably to the Republic of Ireland and to the rest of the UK."

 
The news was welcomed by the chief executive of the Consumer Council, Antoinette McKeown, who said the announcement was "good news".  She added that "In 2008 Phoenix customers suffered from significant increases on their bills, which caused the Consumer Council serious concern," Thursday's decrease reduces gas prices to a level lower than in 2006 and puts a price in place for the next 18 months, bringing much-needed stability for many consumers."

Citizens Advice welcomes this latest drop from Phoenix, particulary as CAB clients, and the general public are finding  it more and more difficult to cope under the current economic conditions. It has been particularly difficult for those customers who find themselves in arrears with Phoenix. Many of their customers pay by direct debit and receive estimated bills. This can leave them owing a substantial amount, if the estimations are not accurate. Those who use pre-pay cards also often find that much of the money they put on their pre-payment card is used to cover arrears, leaving them with little gas to use, and no funds with which to purchase more. CAB hopes that the latest reduction will ease this situation give Phoenix Customers peace of mind, approaching the winter months.