Our final determination on the price control for Northern Ireland’s gas distribution networks for 2017-2022 (GD17), and associated licence modifications for consultation, are published today. GD17 is the distribution price control for Phoenix Natural Gas Limited (PNGL), firmus energy (Distribution) Limited and SGN Natural Gas Limited (1) which will run from 1 January 2017.
This price control details an efficient level of revenue to allow the gas distribution network companies finance the ongoing investment in, and operation of, their gas networks for the period 2017-2022.
Key outcomes from the price control will be:
• The reduction in distribution costs will help keep consumer bills lower (2). Industrial and commercial consumers will see the largest fall due to their higher consumption levels, but domestic bills will also reduce.
• In the firmus energy distribution area, domestic bills will fall by £16 per annum and domestic consumers in the PNGL distribution area will see an average £1 reduction. In its first price control, the new SGN distribution area will see charges for domestic consumers £33 less per annum than that originally submitted by the company (3);
• 1,377 kms of new network built;
• 134,000 more customers with access to gas resulting in over 60% of premises in Northern Ireland having access to gas;
• 89,000 connections leading to a total of over 300,000 gas customers in 2022;
• Delivery of the major extensions to East Down and Gas to the West which were subject to strategic assessment by the Department for the Economy, identifying £230 million of economic benefits; and
• Significant environmental benefits overall from reduced carbon emissions.
The publication of the final determination follows a period of public consultation on draft determination proposals published 16 March 2016. 10 responses were received and can be viewed below:
One response was treated as confidential. Each response has been carefully considered, along with the business plans submitted by PNGL, firmus energy and SGN Natural Gas Ltd.
A paper copy of the determination and the accompanying document can be obtained from:
Paul Harland
Utility Regulator
Queens House
14 Queen Street
Belfast
BT1 6ED
Email: paul.harland@uregni.gov.uk or Gas_networks_responses@uregni.gov.uk
Tel: 028 9031 1575
Additionally, a consultation is also launched today on proposed licence modifications to bring into effect the GD17 final determination. The closing date for the consultation responses is 14 October 2016 at 12 noon.
Copies of the determination paper and any accompanying documents will also be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.
Notes:
(1) The PNGL gas network currently covers the Greater Belfast area with an extension also planned for East Down by the end of the price control period. The firmus distribution network is based on the ten district towns outside Belfast. The SGN network comprises the Gas to the West area, on which work has commenced and is due for completion in 2018. Please see maps provided in Appendices to main GD17 document.
(2) Distribution charges make up around 40% of the total domestic bill.
(3) All £ amounts are in real terms and do not include inflation. The firmus energy tariff is also dependent on how it applies its under recovery amounts so actual figures may differ.