Draft determination for gas distribution network operators (GD17) published for consultation

The Utility Regulator today publishes, for consultation, its draft determination for the next price control for Northern Ireland’s gas distribution network operators - Phoenix Natural Gas Limited, firmus energy (Distribution) Limited and SGN Natural Gas Limited. This price control, referred to as GD17, is due to take effect from 1 January 2017 onwards.

The draft determination sets out our proposals for the amount the gas distribution network operators have to run their businesses and invest in the gas network. Key aspects for the companies are on operating and capital expenditure allowances, targets for new gas pipelines and connections, proposed rate of return and forecast volumes.

The draft determination also considers the expected impact of these proposals for consumers.

As previously announced, we will be holding a stakeholder workshop to discuss key aspects of this draft determination on 10 May 2016 at our office. If you are interested in attending, please register with Karen McConnell by Tuesday 26 April 2016. Please note places are limited and are available on a first come first served basis.
Email: karen.mcconnell@uregni.gov.uk or Tel: 028 9031 6342

This draft determination follows the:
• publication of the discussion document on our overall approach for the GD17 price control on 19 December 2014;
• publication of the update on our overall approach for the GD17 price control on 17 April 2015;
• publication of the GD17 business plan data templates with associated regulatory instructions and guidance on 14 May 2015; and
• submission of the business plans for the GD17 price control by Northern Ireland’s gas distribution network operators by September 2015.

Below you will find links to all the annexes referenced in the draft determination.
• Annex 1: Proposed Modifications to the firmus energy (Distribution) Limited licence
• Annex 2: Proposed Modifications to the Phoenix Natural Gas Limited licence
• Annex 3: Proposed Modifications to the SGN Natural Gas Limited licence
• Annex 4: GD17 Efficiency Advice, Relative efficiency of NI Gas Distribution Networks (Deloitte LLP)
• Annex 5: Indicative findings from top-down benchmarking
• Annex 6 : Real Price Effects & Frontier Shift
• Annex 7 : GD17 Cost of Capital – First Economics
• Annex 8:  Emergency Costs
• Annex 9: Opex Backcasting Methodology
• Annex 10:  PI Models - firmus energy (Distribution) Limited
• Annex 11: PI Models - Phoenix Natural Gas Limited
• Annex 12: PI Models - SGN Natural Gas Limited

We welcome all views on any particular aspect of the paper or any related matter.

Our preference would be for responses to be submitted by email.

Copies of the GD17 draft determination can be made available in large print, Braille, audio cassette and a variety of minority languages if required.