Network cost allocation research conclusions published

Both the electricity and gas markets in Northern Ireland provide supplier choice, a range of tariffs, unlimited switching and changing market shares that demonstrates competitive activity. The UR keeps the development of the retail energy market under review and we collect, analyse and publish an increasing range of market information, including price comparisons.

In 2013 we published a report which provided a comparison of non-domestic electricity prices in Northern Ireland compared with other EU countries.  We then began to analyse electricity prices further, specifically looking at comparisons with geographically close jurisdictions. The analysis was focused on comparing the level of transmission and distribution network and related charges in NI, the Republic of Ireland (RoI) and the relevant comparators in Great Britain (GB). 

The primary purpose of the research report we are publishing today is to provide further clarity in relation to electricity pricing in Northern Ireland, as well as provide comparisons with other regions. This will help provide transparency and inform debate as well as future policy decisions.

The main findings of the research concurred with the initial results of previous UR analysis.  In summary the analysis concluded:
• The overall core network tariff levels do not contribute to higher end-user electricity prices in NI compared with RoI or GB
• Variances are partly due to the level and allocation of non-network pass-through charges, as well as the allocation of network costs across customer categories

Copies of the document will be made available in large print, Braille, audio cassette and a variety of minority languages if required.