THE PROSPECT of cheaper gas bills is in the pipeline for Northern Ireland consumers following a decision by Phoenix Natural Gas to reduce its tariffs by 19 per cent.

Phoenix Supply said the price cut, which will come into effect next month, is due to the continued fall in the wholesale cost of gas. According to the company it means the average domestic gas bill in Northern Ireland will fall by £104 annually.

This is the second price cut to be implemented by Phoenix Supply in nine months and follows a 22.1 per cent reduction at the start of this year. The company is the first major natural gas supplier in the UK to reduce prices this year.

David Strahan, general manager of Phoenix Supply, said he was delighted to be in a position to lead the industry in relation to price cuts. “We made a commitment to our customers in January that should the wholesale cost of gas continue to fall we would, once again, reduce prices accordingly. This is a promise we have kept,” he added.

Phoenix Supply claims that the average annual domestic gas bill in the North has effectively been reduced by 36.9 per cent or by £258 in 2009. It estimates that once the price reduction comes into play, the average annual bill for a domestic customer in Northern Ireland will be in the region of £437.

The price reduction has been welcomed by the North’s utility regulator. Chief executive Iain Osborne said active regulation was playing an important role in helping households and small business weather the recession.

“We have acted quickly to make sure recent falls in wholesale gas prices are fully passed on to the consumer. The reduction reflects a further fall in wholesale gas costs, largely caused by the economic downturn and improved gas supply infrastructure into the UK,” Mr Osborne added.