Northern Ireland energy prices 'could stay high into winter'

Household energy prices will continue to be high into the autumn and winter if the Iran crisis continues for another four to six weeks, MPs have been told.

Wholesale energy prices have soared since the Iran war began on 28 February.

The production and transportation of energy across the Middle East has slowed or stopped due to missile strikes and drone attacks.

The most immediate impact has been on the cost of home heating oil which has risen by around 80% in Northern Ireland.

David Blevings from the NI Oil Federation told the NI affairs committee that even if the conflict ended immediately it would take time for supply chains to return to normal.

"Even if the straits open tomorrow it's going to take four to six weeks for the crude oil to reach refineries. That has to be refined and put into the system."

Blevings added: "Information I received yesterday said it we see a resolution before the end of this month we may see a return to relative normality by quarter four".

Quarter four would mean the start of October.

The Utility Regulator has warned that cuts in gas prices which took effect in April will be reversed if the crisis continues.

Higher wholesale higher prices have not yet been passed through to consumers, as energy companies buy their gas up to two years in advance.

The longer the conflict continues the less scope they have to "hedge" their prices in this way.

Chief Executive of the Utility RegulatorJohn French, also noted that wholesale prices in the all-island wholesale electricity market have risen by 19% since the start of the crisis.

Those prices have also not yet been passed through to households.

The MPs heard criticism of the £100 oil heating grant which was announced by the NI Executive last week.

It will be paid out to around 300,000 lower income households in about three months time.

Pat Austin, from National Energy Action, described it as "woefully inadequate."

She compared it to similar schemes in Scotland and Wales where some households will get £300 or £200 respectively.

Samantha Gallagher, from the Rural Community Network, said there has been an increase in advice, community support and food banks.

"The reality and the stories that we are hearing is people who are out working and who travel far for their jobs are, for example, having to choose between putting fuel in their car to go to work or their lunch."

Gallagher said the oil support scheme has not brought any comfort to those she works with.

"There are concerns, obviously, about how long the rollout will take.

"So how long it will take families to even benefit from it. But also the threshold is quite low, and £100 will definitely not fill your oil tank," she told BBC Radio Ulster Evening Extra's programme.