Today the Utility Regulator publishes a position paper regarding cost recovery of pension deficit costs by regulated companies.
This paper explains that regulated companies, which currently pass through the costs of defined benefit pension deficit to NI customers via regulated tariffs, will no longer be permitted to do so. This is applicable for any new deficit incurred after a “cut off” date of 31 March 2015. This is in line with the decision of the Competition Commission’s determination on the NIE Ltd price control. “Historic” deficits incurred before this date will still be able to be recoverable from customers but any new “incremental” deficits incurred after this date will become the responsibility of the shareholder.