SSE Airtricity Gas NI Limited - How is the price of Natural Gas made up?

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How is the price of Natural Gas made up?

The cost of supplying natural gas comprises the cost of purchasing natural gas on the wholesale market, transporting it through the transmission pipeline, distributing it through the local network in Greater Belfast, and suppling the gas to end customers.

Each element of the final price to customers is explained in more detail below:

Wholesale Cost of Gas

The cost of natural gas is a large component of the end price which consumers pay. Since Northern Ireland is dependant on imported gas through the UK this aspect of the tariff is vulnerable to changes in international market prices for wholesale gas.

Transmission

This is the cost all Suppliers pay to transport gas through the transmission pipeline from Great Britain to the local distribution network in Greater Belfast.

Distribution

This is the cost all Suppliers pay to cover the costs associated with distributing natural gas in the local network to individual premises.

Supply

Supply costs represent a small percentage of the final cost of gas. These costs include administration costs and customer accounting and service costs.

 How the price of natural gas is made up