Donegal people on the move to Derry
There is strong anecdotal evidence to suggest the number of people moving from Donegal to Derry is increasing as the economic situation here deteriorates.
The ‘Democrat’ has learned that a number of factors are combining to send growing numbers of Derry people who moved south during the years of the so called Celtic Tiger back across the border - the recent increase in Vehicle Registration Tax by Customs, major negative price differential on many goods south of the border, and the increasingly difficult employment situation particularly for those in the building trade.
A study by The Democrat shows that Sky television, for example is roughly 50% more expensive in Donegal than Derry.
The Democrat compared a Sky package with a free HD box, and subscription to Sky Sports and Sky Movies package with the Sky 1 variety pack. In the Republic the cost comes to €81 per month with a €30 set up fee.
The same package in Northern Ireland costs 40 with a one off set up fee of 30. However that package also included broadband everyday lite and talk freetime packages free of charge. At first appearances this would make the NI package considerably more value for money than the ROI equivalent?
The question then, why are the prices so different?
A spokeperson for Sky said: "Whilst the Sky offering in ROI is broadly similar to the UK offering, there are some differences. In the UK, the UK terrestrials are available on a free to air basis whilst in ROI, BBC 1&2 and C4 are retailed by Sky (ITV is not available) for which Sky pays both BBC and C4. Sky also retails the Irish terrestrial channels (RTE 1&2, TV3, 3e and TG 4) in ROI whilst in Northern Ireland, TV3 and 3e are not available."
The Sky spokesperson also said: "Our pricing reflects the various costs in providing a quality and value service to our customers. The pricing of Sky's services in the Irish market place is determined by a number of factors, including the costs of carrying out business in the Republic of Ireland, the competitive environment and the commercial environment in which the Sky Group operates as a whole. The cost of conducting business in Ireland differ from those in the UK, for example, VAT rates, costs associated with the retailing and installation of Sky's services, and the costs in acquiring content specifically for the Irish market, including separate Premier League rights deal and payments to channels such as the BBC and C4 for inclusion in channel packs offered to our customers”
Electricity prices
As the Electricity Supply Board (ESB) closes in on the completion of a deal to purchase NIE, discrepancies still exist in the price of energy on both sides of the border.
In fact the ESB has just begun construction work on six wind turbines between Dunamanagh and New Buildings in County Derry to supply the grid with renewable energy.
Those living in the North who are billed quarterly are done so at a unit rate of 14.31 pence. With the added 5% VAT charge this brings the unit rate up to 15.03
There are savings to be made on off peak usage when the unit rate comes to between 8.25p and 11.92 pence per unit.
These rates vary for pay as you go customers and Economy 7 users.
There is a standing charge of €5 per quarter compared to the ESB in the South rate of 25c per day for Urban 24 hour tariff. This amounts to a monthly charge of roughly €8.
Users on the ESB Rural 24 hour tariff must pay a standing charge of 33cent per day or roughly €10 per month.
VAT on energy in the Republic is also set at a higher rate of 13.5%.
One reader recently told the Democrat: "With the VRT blitz combined with rising electricity prices and the cost of living I put my house on the market. If I sold my house today I would be in Derry tonight."
The sale of the reader’s house might take longer than desired as the market in Donegal remains virtually stagnant.
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Weather for Donegal
Tuesday 07 February 2012
Today
Sunny spells
Temperature: 5 C to 9 C
Wind Speed: 16 mph
Wind direction: South east
Tomorrow
Heavy rain
Temperature: 5 C to 7 C
Wind Speed: 22 mph
Wind direction: South
