GD17 Final Determination - final
| Year | 2016 |
| Published date | 15 September 2016 |
| Energy Sector | Gas |
Price Control for
Northern Ireland’s
Gas Distribution
Networks
GD17
Final Determination
15 September 2016
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.
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 Mission
Our Vision
Our Values
Value and sustainability in energy and water.
We will make a difference for consumers by
listening, innovating and leading.
Abstract
Audience
Consumer Impact
We are publishing the final determination for GD17, the price control for the gas distribution
companies Phoenix Natural Gas Ltd (PNGL), firmus energy (FE) and SGN Natural Gas
Limited (SGN) for the years from 2017 and onwards. The final determination sets out a
package of measures to continue the efficient growth of the gas industry in NI through building
more pipelines and increased connections.
The price control sets out the amount the gas distribution companies will have to run their
businesses and invest in the gas network. The key decisions for the companies are on
operating and capital expenditure allowances, targets for new gas pipelines and connections
and the rate of return.
Industry, consumers & statutory bodies.
The determination results in a reduction in current distribution charges (before
inflation) for all customers.
For FE domestic customers the reduction equates to around £16 per annum in overall
bills against current tariffs.
For PNGL domestic customers the reduction is around £1 per annum against current
tariffs.
For SGN customers the determination is the first to set distribution charges and results
in domestic bills around £33 per annum less than the SGN submission.
For industrial and commercial customers the reductions will be much greater given
their higher consumption levels.
Distribution charges make up around 40% of the total domestic customer bill.
Our final determination provides for investment of £226m, sets targets for an additional
c89k customers to connect to gas and allows 1,377km of additional gas pipelines to be
built. This will ensure a further c134k more customers will have gas outside their
property which means by 2022 60% of NI properties will have access to the benefits of
natural gas.
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