The Utility Regulator today publishes its RP6 draft price control determination for the period 2017-24 for consultation. The publication of the draft determination follows an extensive review of NIE Networks’ RP6 Business Plan, which was submitted on 29 June 2016.
Key elements of the draft determination are as follows:
- allows for £662 million of network investment between 2017-2024 – and also makes provision for the construction of the second north-south electricity interconnector;
- puts in place new performance indicators to ensure that customers receive an improved service;
- identifies £169 million (or 11%) of cost savings by NIE Networks compared to the company’s business plan;
- results in a small decrease over the six years of RP6 in the network charges paid by consumers. By 2023/24 this reduction would be £9 per annum compared to network charges at the end of RP5. Savings for the largest energy users are likely to be more significant and up to £10,000 per annum for the very largest by 2023/24(1).
Utility Regulator Chief Executive, Jenny Pyper said:
“The publication of our draft determination follows an extensive engagement process which included not only many meetings but also analysis, discussion and consideration of the various RP6 submissions to my team as well as addressing a large number of clarification queries and responses from the company.
“Our aim at RP6 is to ensure that NIE Networks is provided with an efficient level of revenue to enable the company to deliver a quality service that will benefit customers across Northern Ireland. Our proposals identify £662 million of investment in the network. We also propose cost savings of 11% in revenue terms that will be passed on to customers in lower bills. We also set out proposals for improving network reliability and customer service.
“We look forward to consulting with consumers, their representatives and the wider stakeholder community as we also continue our dialogue with NIE Networks itself during the forthcoming 8-week consultation period.”
RP6 documentation and related information, including Technical Annexes to our Main Report, can be accessed in the consultation section of our website.
We invite all interested stakeholders to attend a workshop on the 28 April 2017 at 10:00 to discuss the RP6 draft determination. If you would like to attend, please email simon.scott@uregni.gov.uk by 21 April 2017.
Written responses to our draft determination consultation should be received no later than the 19 May 2017 at 5pm.
For further information, please contact Greg Irwin on 028 9031 6348 or 07794 965911.
Notes:
(1) Excludes RPI inflation and costs associated with network capacity growth projects which are uncertain.