GD14 Price control for Gas Distribution networks Final Determination
| Year | 2013 |
| Published date | 20 December 2013 |
| Energy Sector | Gas |
GD14 Price Control for
Northern Ireland’s
Gas Distribution Networks
for 2014-2016
GD14
Final Determination
20 December 2013
About the Utility
Regulator
The Utility Regulator is the independent non-ministerial government department
responsible for regulating Northern Ireland’s electricity, gas, water and sewerage
industries, to promote the short and long-term interests of consumers.
We are not a policy-making department of government, but we make sure that the
energy and water utility industries in Northern Ireland are regulated and developed
within ministerial policy as set out in our statutory duties.
We are governed by a Board of Directors and are accountable to the Northern Ireland
Assembly through financial and annual reporting obligations.
We are based at Queens House in the centre of Belfast. The Chief Executive leads a
management team of directors representing each of the key functional areas in the
organisation: Corporate Affairs; Electricity; Gas; Retail and Social; and Water. The staff
team includes economists, engineers, accountants, utility specialists, legal advisors and
administration professionals.
Value and sustainability in energy and water.
We will make a difference for consumers by
listening, innovating and leading.
Our Mission
Be a best practice
regulator: transparent, consistent, proportional,
accountable,
and
targeted.
Be a united team.
Be
collaborative
and
co-operative.
Be
professional.
Listen and
explain.
Make a
difference.
Act with
integrity
.
Our Vision
Our Values
Abstract
Audience
Consumer
impact
We are publishing our price control proposals for the gas distribution companies,
Phoenix Natural Gas Ltd (PNGL) and firmus energy (FE), for the period 2014-16. The
price control sets out a package of measures to continue the efficient growth of the
gas industry in NI through building more pipelines and increased connections.
Our determination sets out the amount that the companies shall have to run their
businesses and invest in the gas network. The key decisions for both companies are:
operating and capital expenditure allowances will be lower than requested but largely
consistent with historic costs, the setting of challenging targets for new gas pipelines
and connections and the proposed rate of return to remain at 7.5% for the duration of
the price control. Our price control proposals will result in reduced costs to
customers.
Industry, consumers & statutory bodies.
The determination results in a reduction in current distribution charges for the average
PNGL domestic customer of around £23 per annum. For industrial and commercial
(I&C) customers, particularly large ones, the reduction will be greater given their
higher consumption levels.
For FE domestic customers the reduction in distribution charges is around £50 per
annum. For I&C customers, particular large ones, the reduction will be greater given
their higher consumption levels.
Distribution charges make up around 35% of the total domestic customer bill.
Our final determination sets targets for an additional 43,334 customers to connect to
gas and allows 344km of additional gas pipelines to be laid. This will ensure even
more customers can enjoy the benefits of natural gas.
To continue reading
Request your trial