The Utility Regulator is publishing a consultation on the PPB price control to apply from May 2019 until September 2023. This will replace the existing price control, in place since April 2015.
The Power Procurement Business (PPB) was established as part of the privatisation of the Northern Ireland electricity industry as a guaranteed purchaser following the creation of long term power purchase contracts. PPB purchases energy from independent generators under these long term contracts, while also making payments for availability. PPB sells this energy into the SEM, while also retaining capacity and ancillary services revenue. Any mismatch (either positive or negative) between PPB’s costs and revenues will be rebated to or collected from customers via the NI Public Service Obligation (PSO) levy.
The costs of running PPB under the current price control is approximately £4.5m per year, with an additional gain share mechanism whereby PPB retain a percentage of any annual surplus on the long term contracts. The contracts expire in September 2023, and can be terminated, with six months’ notice, by the Utility Regulator during this period. This is therefore the final price control for PPB, and will apply from May 2019 until the contracts expire or are terminated.
We welcome representation by interested parties by 5pm on 24 October 2018, which should be addressed (preferably via email) to: