DS3 Implementation Cost – Special Project Allowance

Published date02 October 2019
Energy SectorElectricity Networks
Northern Ireland Authority for Utility Regulation
Queens House, 14 Queen Street, BELFAST, BT1 6ER
T: +44 (0) 28 9031 1575 F: +44 (0) 28 9031 1740 W: www.niaur. gov.uk
Jo Aston
Managing Director
SONI Limited
Castlereagh House
12 Manse Road
Ref: NET/E/TH/135
23 August 2019
Dear Jo,
Re: DS3 Implementation - Special Project Cost Approval
On 17 July 2019, SONI made an application to recover capital costs associated with
SONI’s proportion of DS3 implementation costs. The claim of £1.41m (forecast
September 2019 prices) was submitted in line with regulatory principles and
included an NPV neutral adjustment.
The UR now gives notice to SONI that:
1. In accordance with paragraph 9.1 of Annex 1 of the TSO licence, the
application made by SONI shall be treated as Special Project Costs.
2. Special Project Costs will be recovered under the 𝒁𝒕 term and in
accordance with paragraph 2.2(j) of Annex 1 of the licence.
Following UR Board scrutiny, the capital cost approved by UR represents the full
amount claimed. For confirmation, amounts approved are detailed in the table below
[and in April 2014 prices for ease of comparison with the current price control].
SONI Claim
(Sept 2019 prices)
UR Allowance
(Sept 2019 prices)
UR Allowance
(April 2014 prices)
Implementation Cost
The approval set out above is subject to the following conditions:
(a) SONI can recover the depreciation and return on actual spend up to the
maximum amount approved.

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