The Utility Regulator today publishes the decision paper on NIE’s payment security policy (PSP) arrangements with suppliers. The PSP requires suppliers to have in place payment security cover which allows NIE to recover some costs in the event of a payment default.
NIE proposed changes to the level of payment security cover outlined in their current PSP policy that was approved for use in 2006. We consulted on these changes in April and asked for stakeholder views on possible changes to the PSP. The consultation paper is available at the following link:
UR consultation on NIE’s Payment Security Policy
We received 7 responses to our consultation.
Following review of the responses we have determined that the balance between the costs to customers of bad debts (domestic and non-domestic) and the cost to Suppliers for the provision of security cover is currently appropriate. In terms of the options presented in the consultation paper, “Option 1 Maintain the status quo” is the option that the Utility Regulator has decided upon at this time. Therefore we have decided to not approve an increase in payment security cover, as was requested by NIE under Condition 24 of their electricity distribution licence.