The Utility Regulator today confirmed that it would be carrying out an investigation into NI Water’s performance during the recent water supply failures across Northern Ireland.
Announcing the investigation, Shane Lynch, the Utility Regulator’s Chief Executive said:
“Following the recent water supply failures affecting consumers across Northern Ireland, we decided to exercise our statutory powers by announcing an investigation into NI Water’s performance.
“We intend to get to the heart of what went wrong during the recent crisis, and will examine how NI Water planned and reacted to these events.”
Mr Lynch also said:
“As a key stakeholder, we also consulted the NI Executive on the terms of reference for the investigation. Following consideration of the Executive’s comments, the overall review will also now consider broader governance issues, including the role and responsibilities of the Minister for Regional Development in relation to this incident.
“Recognising that this area of inquiry is outside the statutory remit of the Regulator, the First Minister (FM) and Deputy First Minister (DFM) will nominate two appointees to specifically consider the broader governance issues. The two appointees will also consider the Regulator’s recommendations.”
The investigation will commence immediately. The final investigation report will be in two parts. The first part, which will deal with the performance of NI Water - in the context of the Regulator’s statutory powers - will be produced by the Regulator and will be approved by its board. The second part will address the broader governance issues and will be produced by the two FM and DFM appointees.
The final investigation report (which will be a composite of both parts) will be submitted to the Executive by the end of February.
ENDS
For further information, contact Adele Boyle on 07794 965922 or Greg Irwin on 07794 965911.
Investigation terms of reference
Notes to Editors
About the Utility Regulator
The Utility Regulator is the independent non-ministerial government department responsible for regulating the electricity, gas, water and sewerage industries in Northern Ireland.
The Utility Regulator’s primary duties are to protect the interests of consumers with regard to price and quality of service and to ensure that regulated utilities are able to finance the provision of such services. Key parts of our work include the scrutiny of charges to consumers to ensure that they are as low as they can be.
Our principal role with regard to the Northern Ireland water industry is to provide independent expert scrutiny and regulate NI Water in a way that provides incentives and encourages the company to achieve the highest possible service for consumers in terms of both quality and cost. In addition, we are responsible for protecting the interests of water and sewerage consumers by promoting a robust and efficient industry.
We have undertaken a major review (price control) of NI Water’s business and spending plans to ensure that effective water and sewerage services are provided in the most effective way and at the lowest cost. The price control for 2010-2013 (PC10), which has now been accepted by NI Water, sets out a plan for the water company to deliver a half a billion pound investment programme and has identified £91m of efficiency savings. The Utility Regulator also has powers of investigation.
Key aspects of the investigation
The investigation will review the following aspects:
- contingency planning and implementation;
- internal and external communication;
- cause and extent of supply problems; and
- governance, leadership and management.
Organisational Arrangements
The Utility Regulator will establish an experienced and expert operational team and an oversight committee. The oversight committee will steer the investigation and review the analysis and findings of the operational team. The Oversight Committee will include representation from the Utility Regulator’s Board together with independent experienced experts. The members of the committee will be announced as soon as possible.
Statutory powers and legal remit
Under the Water and Sewerage Services (NI) Order 2006, the Utility Regulator was given the legal remit to become the economic regulator of Northern Ireland’s water industry. Our primary duties under the legislation include:
- ensure that NI Water carries out its functions properly;
- protect the interests of consumers: and
- ensure that NI Water is able to finance its functions.