THE Utility Regulator has announced plans to conduct an inquiry into recent sharp rises in electricity costs following criticism from the business community.

Utility Regulator Iain Osborne said he had taken on board concerns expressed by business owners at a meeting last week and will investigate how suppliers communicate and set charges for corporate electricity customers.

The meeting came after businesses were hit by up to 40% hikes in their bills on October 1.

Most of the increase was attributed to the cancelling of a rebate on the Public Service Obligation (PSO) levy.

The review will focus on transparency and understanding of the underlying costs incurred by electricity suppliers

The Northern Ireland Authority for Utility Regulation said there appeared to be a lack of clarity for some business customers on the underlying costs incurred by their electricity suppliers.

It also said that while it communicated to electricity suppliers that the nine month Pounds 100m PSO rebate would come to an end on September 30, this may not have been clearly communicated by suppliers to some customers.

The inquiry is expected to be completed early next year.

Northern Ireland Manufacturing (NIM) gave the inquiry a cautious welcome.

Chief executive Bryan Gray said: "NIM is pleased that the regulator has listened to the points which we have forcefully put to him and launched an inquiry into the ludicrous increases in electricity costs which have been foisted upon our members since the start of October.

"Whilst we welcome this inquiry, we will not be winding down our vocal opposition to the rising cost of doing business. This review is a start, but that is all it is."

The Consumer Council also welcomed the inquiry.

John French, head of energy at the Consumer Council said: "Northern Ireland's business customers have the right to be concerned about the lack of transparency in the electricity industry about price rises. The Consumer Council shares these concerns as it is more important than ever that businesses can plan ahead and the cost of electricity is an important element of this.

"We have been speaking to energy suppliers about this issue and have written to the Regulator expressing our concerns."

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