Utility Regulator announces consultation on price control proposals for NI Water

The Utility Regulator today publishes its draft price control determination for NI Water for the period 2013-15 (often referred to as PC13).  The draft determination is the Regulator’s assessment of NI Water’s revenue requirements over the two-year period.

Key benefits of our draft price control proposals are:

• Lower charges for consumers - charges will fall by an overall average of 7% below inflation in each of the two years.
• A more efficient company - for every £1 spent by comparative water companies in England and Wales, NI Water currently spends £1.62 on running its operations. We are challenging the company to reduce this 38% operational efficiency gap. 
• Investment in water and sewerage assets - we have allowed for £336 million of prioritised and targeted investment, maintaining the efficiency levels in PC10, to deliver specified infrastructure improvements.
• Higher levels of service – an improvement in the ‘overall performance assessment’ (OPA) score, moving from 131 at the start of PC10 to 215 by close of PC13.  This will narrow the gap to the average water company performance of 290.

Commenting on the proposals, Utility Regulator Chief Executive, Shane Lynch, said:

“Our proposals focus on delivering positive outcomes for water and sewerage consumers – lower charges for non-domestic consumers, targeted investment, improved efficiency and enhanced levels of service. It is encouraging that NI Water has exceeded the targets that we set during the previous price control period (PC10). Our proposals will challenge the company to build on this performance and move further along the pathway towards the most improved water and sewerage company in the UK.”

The Utility Regulator’s Director of Water, Jo Aston, said:

“We want NI Water to be ambitious about improving the services it provides to consumers.  Our benchmarking of NI Water with other comparable water and sewerage companies shows the extent of this challenge. The company is moving in the right direction, and we expect it to build on its success from PC10, and continue to make a marked improvement in its performance relative to other water and sewerage companies during PC13.”

A final PC13 determination is due to be published before the end of the year.

Responses to the consultation should be received by 5.00pm on 8 November 2012 and sent to:

caspar.swales@uregni.gov.uk

or

Caspar Swales
Utility Regulator
Queens House
14 Queen Street
Belfast BT1 6ED

PC13 Draft Determination Technical Annexes