Today the Utility Regulator publishes our latest Cost and Performance Report for NI Water. This report covers the PC13 price control period of 2013-2015, representing NI Water’s second regulatory price control.
The Cost and Performance 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. Where appropriate, we have also compared NI Water’s performance with companies in England, Scotland and Wales.
Our key findings are as follows:
• NI Water’s opex costs reduced in nominal terms from £190.7m in 2013-2014 to £187.5m in 2014-2015. This translates into a £3.2m nominal fall, and once inflation is taken into account, this represents a 3.5% real terms reduction in the day-to-day running costs of the business.
• The full capital investment budget was utilised in PC13. Our assessment of current and projected investment indicates that the company has delivered value for the capital committed over PC13.
• NI Water did not meet our 2014-2015 Overall Performance Assessment (OPA) target, primarily due to the effects of the industrial action. Had this been excluded, the company would have met its target for interruptions to supply greater than 12 hours. Despite this, NI Water still ended 2014-2015 with a higher OPA score than at the start of PC13. Scope remains for further service improvement however, 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, including 7 out of 14 consumer service measures and all of the water and sewerage quality KPIs. It has delivered the majority of output measures and maintained stable serviceability.
We are pleased to report that, from assessing the 2013-2014 and 2014-2015 data that in overall terms, NI Water has broadly delivered on the annual targets set by us for PC13. The company outperformed its operational (opex) efficiency target, while at the same time improving levels of service.
Copies of the documents can be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.