The Utility Regulator, the independent body which regulates water and sewerage services, has today published its final determination on NI Water’s Price Control 2010-2013 (PC10), which identifies £91 million of revenue savings. The final determination also supports an investment programme of £564 million.
The determination sets out the revenue that the company is allowed in order to deliver water and sewerage services to consumers for the three-year period. It also identifies what is to be achieved through the investment programme, the expected improvements in service and the level of efficiency the company is expected to deliver.
In its determination, the Utility Regulator targets revenue savings of £91 million, a reduction of 8% on NI Water’s original revenue proposal. Subsidy required from government can now be £68 million less than originally anticipated by NI Water. In addition, customer bills can now be £23 million lower than projected by the company.
The determination also allows for a capital investment programme worth £564 million over three years. This is equivalent to an annual investment of £279 per property in Northern Ireland, which is 47% higher than the English and Welsh average.
Iain Osborne, Utility Regulator Chief Executive, said:
“The publication of our final determination is a key milestone in the delivery of safe, reliable and high-quality water and sewerage services in Northern Ireland. As an independent body acting on behalf of consumers, we have rigorously scrutinised and challenged NI Water’s plans to ensure we can guarantee consumers the best value for money.
“We have set clear targets for NI Water and we will closely monitor its progress. Other water companies have been subject to a similar regulatory process and they have delivered. The targets we have set today are challenging but achievable and we look forward to working with the company to ensure they are met.”
ENDS
For further information, contact Adele Boyle on 028 9031 6343 or 07794 965922.
Notes to Editors
1. The Utility Regulator (Northern Ireland Authority for Utility Regulation) is the non-Ministerial Government Department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.
2. A draft determination was published on 18 September 2009 and 16 responses were received following the consultation period. Department for Regional Development, NI Water, Northern Ireland Environment Agency, Water UK, Ulster Farmer’s Union, CBI, Consumer Council and NIPSA were among those to submit a response.
3. PC10 determines what it should cost NI Water to deliver continuing investment and improved services over the three-year period, subject to the public expenditure allocations that will be set for the company by the NI Executive.
4. NI Water now has two months to accept the Utility Regulator’s final determination or refer it to the Competition Commission. If accepted, the final determination will apply through 2010-13, in particular as the basis for charges to business customers.
5. Additional information includes The PC10 Final Determination Summary Report (PDF 4.1 MB), PC10 Final Determination - Q&A document (PDF 166 KB)and PC10 Final Determination Main Report (PDF 1.8 MB). Responses received to the draft determination can be found on the website within publications - water and sewerage.