The Utility Regulator today said that its scrutiny of energy and water companies had secured £210 million of efficiency savings for Northern Ireland energy and water consumers since 2006.
Speaking at the launch of its 2009-10 Annual Report, Professor Peter Matthews, Chairman of the Utility Regulator, said:
“Our job is to act as an independent, expert regulator for Northern Ireland consumers. Protecting their interests means that we relentlessly challenge utility companies in Northern Ireland to make sure that their costs are as low as possible. Our scrutiny since 2006 has saved at least £210 million of costs that may otherwise been passed on in higher bills for consumers.
“We are also aware of our responsibility to cut our own costs. Our budget for 2010/11 is 9% lower (in cash terms) than the budget set for the previous year. In fact, since 2006, the benefits that we have brought to Northern Ireland consumers are, on average, nine times more than our costs.”
Professor Matthews also welcomed the beginning of competition in the household electricity market:
“Consumers want competition. Having a choice of supplier tends to drive bills lower for consumers and can act as a catalyst for an improved service offering. As we have had a crucial role in encouraging competition, we will continue to nurture and promote competition wherever possible”
Commenting on current priorities, Professor Matthews continued:
“As the independent regulator of NI Water we are focused on reducing costs and raising service quality. We work in partnership with other stakeholders to secure water and sewerage services that we all can have confidence in.
“The forthcoming price control relating to the electricity network in Northern Ireland is vital for Northern Ireland’s infrastructure. It will require us to balance short-term costs against the future economic risks from our dependency on fossil fuels.”
ENDS
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Notes to Editors
• The Utility Regulator (Northern Ireland Authority for Utility Regulation) is the independent non-Ministerial Government Department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.
• £210million is made up as follows: £42.4m in 2006/07, £58m in 2007/08, £16.7m in 2008/09 and £93.4m in 2009/10.
• Over a four-year rolling average, the savings were £53m, whereas our costs were nine times less at £6m.
• Our analysis, carried out between October 2009 and April 2010 showed that domestic gas consumers in the Greater Belfast area were paying the lowest standard tariff in the UK or Ireland.
• We approve NI Water’s Scheme of Charges for business customers. Throughout 2009/10, we worked with the company to ensure that business customers are charged fairly and that the costs reflect the delivery of services at the lowest reasonable cost.