NIE Networks RP5

RP5 licence modifications decision paper 16th June 2017

Decision Paper on licence modifications to the electricity distribution licence and electricity transmission licence held by Northern Ireland Electricity Networks Limited.

We first consulted on licence modifications in September 2015 and this was followed by a second consultation in November 2016.

We received three responses to our consultation in September 2015 and these may be accessed at:

• NIE Networks 
• SONI
• CCNI

We received two responses to our consultation in November 2016 and these may be accessed at:

• NIE Networks
• SONI

We have considered representations made in response to our consultations and include our respective decisions within the decision paper.   This decision paper on licence modifications is complemented by annexes 1 to 4.

• Appendix 1 - Article 14 modifications to the main body of the Distribution Licence
• Appendix 2 - Article 14 modifications to Annex 2 of the Distribution Licence
• Appendix 3 - Article 14 modifications to Annex 1 of the Distribution Licence
• Appendix 4 - Article 14 modifications to Annex 2 of the Transmission Licence

Final Determination

• RP5 final determination Key Point Briefing (PDF 142 KB)
• RP5 Final Determination Executive Summary (PDF 556 KB)
• RP5 Final Determination Main Paper (PDF 1.4 MB)

Proposed RP5 Licence Modifications

• Article 14(2) Notice(signed) (PDF 42 KB)
• RP5 proposed tracked change copy of NIE T&D Licence (PDF 1022 KB)
• Proposed new RP5 Annex 2 for NIE T&D Licence (PDF 535 KB)

Appendices to the Main Paper

• Appendix A: Glossary (PDF 187 KB)
• Appendix B: Process followed for RP5 (PDF 212 KB)
• Appendix C: Statutory duties (PDF 273 KB)
• Appendix D: RP5 Distribution capex (PDF 484 KB)
• Appendix D: RP5 Transmission capex (PDF 315 KB)
• Appendix E: Comments on NIE T&D response to RP5 draft determination (PDF 815 KB)
• Appendix F: Comments on other responses to RP5 draft determination (PDF 1.1 MB)
• Appendix G: Comments on responses to draft determination on capitalisation practice (PDF 628 KB)
• Appendix H: Comments on responses to draft determination on Fund 3 approach (PDF 447 KB)
• Appendix I: Real Price Effects (PDF 227 KB)
• Appendix J: Pensions methodology (PDF 100 KB)
• Appendix K: Annex 2 tables (depreciation) (PDF 125 KB)
• Appendix K: Annex 2 tables (tax entitlement) (PDF 102 KB)
• Appendix L: Terms of reference for the reporter (PDF 281 KB)

Responses Received to the draft determination consultation

1. RP5 draft determination response - Advice NI
2. RP5 draft determination response - Age NI
3. RP5 draft determination response - Age Sector Platform (ASP)
4. RP5 draft determination response - CBI Northern Ireland
5. RP5 draft determination response - CCNI
6. RP5 draft determination response - Commissioner for Older People for Northern Ireland
7. RP5 draft determination response - Endesa Ireland
8. RP5 draft determination response - Energia
9. RP5 draft determination response - ESB
10. RP5 draft determination response - Farm Woodlands Ltd
11. RP5 draft determination response - Firmus Energy
12. RP5 draft determination response - Gaelectric Developments
13. RP5 draft determination response - Major Energy Users’ Council (MEUC)
14. RP5 draft determination response - Manufacturing NI
15. RP5 draft determination response - National Energy Action Northern Ireland (NEA NI)
16. RP5 draft determination response - NIE Limited
17. RP5 draft determination response NIE Limited (appendices)
18. RP5 draft determination response - Northern Ireland Chamber of Commerce (NICC)
19. RP5 draft determination response - Northern Ireland Electricity Pension Scheme
20. RP5 draft determination response - Northern Ireland Environment Link
21. RP5 draft determination response - Northern Ireland Renewables Industry Group (NIRIG)
22. RP5 draft determination response - Phoenix Natural Gas Ltd
23. RP5 draft determination response - Property Compensation Consultants Ltd
24. RP5 draft determination response - Prospect Trade Union
25. RP5 draft determination response - Renewable Energy Systems Limited
26. RP5 draft determination response - Smart Grid Ireland
27. RP5 draft determination response - SONI
28. RP5 draft determination response - SSE
29. RP5 draft determination response - Stephen Littlechild response for ESB
30. RP5 draft determination response - Ulster Farmers Union
31. RP5 draft determination response - Unite - the Union
32. RP5 draft determination response - Unite Regional Co-ordinating Committee
33. RP5 draft determination response - Viridian Group Limited

Plus one confidential response that is not published

Detailed replies to the Responses Received to the draft determination are available in appendix E and appendix F.

Responses Received to the capitalisation practice investigation consultation

1. Capitalisation Practice consultation response - CCNI
2. Capitalisation Practice consultation response - NIE

Detailed replies to the responses to capitalisation practice received are contained in Appendix G.

Responses Received to the Fund 3 criteria and incentives mechanism consultation

1. Fund 3 criteria and incentives mechanism response - Energia
2. Fund 3 criteria and incentives mechanism response - ESB Wind
3. Fund 3 criteria and incentives mechanism response - Gaelectric
4. Fund 3 criteria and incentives mechanism response - NIRIG
5. Fund 3 criteria and incentives mechanism response - RES
6. Fund 3 criteria and incentives mechanism response - SONI
7. Fund 3 criteria and incentives mechanism response - NIE

Capitalisation Practice

We published a NIE T&D’s capitalisation practice draft determination on 30 August 2012.

Fund 3 Criteria and Incentive Mechanisms

We published our consultation on the criteria and incentive mechanisms for RP5 capex Fund 3 (Investments for Renewable Electricity) on 29 August 2012.

RP5 Draft Determination

We published our RP5 draft determination on 19 April 2012.

• RP5 Draft Determination Key Point Briefing
• RP5 Draft Determination summary
• RP5 Draft Determination Main Paper 

Appendices to the Main Paper

• RP5 draft determination Appendix A - Glossary
• RP5 draft determination Appendix B - Utility Regulator Statutory Duties
• RP5 draft determination Appendix C - 2006 Direction
• RP5 draft determination Appendix D - Capex unit cost review by SKM
• RP5 draft determination Appendix E - Opex benchmarking report by CEPA
• RP5 draft determination Appendix F - Pensions analysis by GAD
• RP5 draft determination Appendix G - Connections
• RP5 draft determination Appendix H - Innovation for RP5
• RP5 draft determination Appendix I - NIE T&D cost of capital report by First Economics

Strategy Paper

We published an update to the RP5 Strategy Paper on 11 May 2011. This included publication of responses received to the original 09 July 2010 Startegy Paper.

We published a Strategy Paper for the RP5 price control on 09 July 2010.