GT22 Final determination
| Year | 2022 |
| Published date | 20 May 2022 |
| Energy Sector | Gas networks |
Price Control for Northern
Ireland’s Gas
Transmission Networks
GT22
Final Determination
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, Markets and Networks. The staff team includes economists,
engineers, accountants, utility specialists, legal advisors and administration professionals.
i
Abstract
Audience
Consumer impact
We are publishing the final determination for GT22 for the four high pressure gas
conveyance licence holders in Northern Ireland, GNI (UK) Ltd, Premier Transmission Ltd
(PTL), Belfast Gas Transmission Ltd (BGTL), and West Transmission Ltd (WTL) for the years
from October 2022 to September 2027.
The price control will set out the amount the gas transmission companies will have to run
their businesses and maintain the gas network. The key decisions for the companies are on
operating expenditure, replacement expenditure and the proposed rate of return.
While maintenance and replacement costs are forecast to increase as the pipelines age,
savings in other areas mean that the overall forecast is relatively stable.
This document is most likely to be of interest to: regulated companies, the energy industry,
consumers, government and other statutory bodies.
The price control sets out the allowed transmission revenue for the holders of high pressure
gas conveyance licences. Gas transmission pipelines transport gas to gas distribution
networks and power stations. Therefore, gas transmission charges apply directly to gas and
indirectly to electricity consumers.
Traditionally, the postalised tariff comprises around 10% of the final price for a domestic gas
consumer, however this is a reducing proportion at a time of rising wholesale gas prices.
We conclude that transmission charges should at least remain stable as a result of GT22 with
the price control implemented not being a direct cause in potential consumer price increases.
To continue reading
Request your trial