Thousands of elderly people and the worst off in Derry are facing unprecedented hardship as electricity prices are set to rise, it was revealed yesterday.

By Eamonn Houston eamonn@derrynews.net

This follows recent price hikes for gas, food, heating oil and fuel.

It emerged yesterday that electricity bills will jump 14% at the beginning of July with a further 15% hike expected in the autumn.

The price of food, heating oil, gas and fuel have already put a sharp pinch on families already struggling to make ends meet.

As the crisis deepens, Derry taxi drivers have been called to a meeting this morning.

The meeting, which gets underway at 10:30am, will discuss the fuel pressures on drivers.

But news that electricity will be 33% more expensive ahead of winter has led to calls for a British government lifeline to be thrown to those expected to be worst hit.

The Consumer Council yesterday issued a dire warning of the latest consequences of what has been dubbed the ‘credit crunch’.

The organisation says that the rises will leave households in Derry having to find an extra £40 per week in just one year for living essentials.

Chief Executive, Derry woman Eleanor Gill said that an emergency financial package is needed to alleviate hardship among those worst hit this winter.

She warned: “All possible ways of paying for this emergency fund must be urgently explored. The Consumer Council is calling on the NI Executive to challenge UK Government to earmark the additional £10.5 million in additional VAT which will be collected here this year as a result of increases in household energy prices for this fund.  This would pay for every fuel poor household to have a 10per cent reduction in the standard electricity tariff this year. “

Foyle MP, Mark Durkan MLA, last night called on the British Treasury to release VAT windfalls.

Mr Durkan, who is chair of the Assembly’s Enterprise, Trade and Investment committee, said householders were now experiencing a ‘consumer crunch and grind’ after NIE announced a 14 per cent rise in electricity prices.

He said: “This is dreadful news and all the more worrying when one considers that the 14 per cent rise is only an interim measure and does not rule out the possibility of a further increase in the Autumn.

“The fact we knew this rise was coming will do little to soften the blow.

“It is clear that we are now in the middle of what is not only a consumer crunch but a consumer crunch and grind.

 “Householders are being hit in the pocket with every bill including day to day living costs and they are struggling.”

Mr Durkan said that the crisis was beyond the control of the Northern Ireland Assembly.

“It is clear world energy prices lie behind some of these increases which make it difficult for the Assembly to address the problem,” he added.

NIE Energy supplies 738,000 domestic and 48,000 business customers.