Today the Utility Regulator publishes our latest Cost and Performance report for NI Water. This report reflects our assessment of NI Water’s performance during the 1st year of its second regulatory price control, PC13, covering the period from April 2013 to March 2015. A more detailed assessment will take place at the end of this price control. This report outlines our independent assessment of how the company performed over the period, against the efficiency targets and key performance indicators outlined in the PC13 Final Determination and Monitoring Plan.
Our key findings are as follows:
- NI Water’s opex costs reduced in nominal terms from £191.7m in 2012-13 to £190.7m in 2013-14. Although this only translates into a £1.1m nominal fall, given that inflation over the last year stood at 2.9%, this represents a 3.3% real terms reduction in the day-to-day running costs of the business.
- Capital investment has been delivered to budget. Our assessment of current and projected investment indicates that the company will deliver value for the capital committed over PC13.
- Service levels in NI Water have improved over the year. The company achieved its highest ever overall performance assessment or OPA1 score of 216 and outperformed the annual OPA target of 202. However, scope remains for further service improvement, not limited to OPA measures only.
- The company has met most of the Key Performance Indicators (KPIs) set by us in the PC13 Monitoring Plan for the current year including 12 out of 16 consumer service measures and all water and sewerage quality KPIs. It is also ‘on track’ to deliver the vast majority of output measures having delivered all serviceability KPIs.
It is clear from assessing the 2013-14 data that overall, NI Water has delivered on the annual targets set by us for PC13. The company exceeded its operational (opex) efficiency target, while at the same time improving levels of service.