Memorandum of Understanding - Utility Regulator and DRD - consequent written agreement - Nov10
| Published date | 23 December 2010 |
| Year | 2010 |
| Energy Sector | Water |
MEMORANDUM
OF
UNDERSTANDING BETWEEN
THE
DEPARTMENT
FOR
REGIONAL
DEVELOPMENT
AND
THE NORTHERN
IRELAND AUTHORITY
FOR
UTILITY
REGULATION
CONSEQUENT
WRI1TEN AGREEMENT
Introduction
The
Memorandum
of
Understanding
(MOU) between
the
Department
for
Regional
Development
(‘the
Department’)
and
the
Northern
Ireland
Authority
for
Utility
Regulation
(‘the
Regulator’) sets
out
a
number
of
mailers
that
will
be
agreed
between
the Department
and
the
Regulator
in
writing. This
Consequent
Written
Agreement
deals
with
these mailers.
2.
The
MOU
identifies areas which
the
Department
and
the
Regulator
will
agree
in
writing.
This
agreement
deals
with
the
following
(the
numbering relates
to
the relevant
paragraph
of
the
MOU):
4.1.1.
Price
Control
The
Department
and
the
Regulator
shall
agree
written
assumptions,
setting
out
specific points
of
agreement
in
respect
of
a
determination.
4.1.2.
Alterations to
Funding
Levels
The Regulator
and
the
Department
shall
agree
written
procedures
for
dealing
with
alterations
to
funding.
Section
1
PC1O
Agreed
Approaches
3.
The
Department
and the
Regulator
agree the following
assumptions
in
respect
of
a
determination.
•
RPI
—
The
existing
approach
contained
in
the
licence
and
for
the use
in
the
Scheme
of
charges
will
be
maintained.
RPI
will
also
be
taken
into
account
in
any
bid
for
additional
funding.
•
COPI
—
The
impact
of
COPI
will
be
noted
and
monitored
but
no
account
taken
of
it
until
PC13
unless
NIW
bring
a
bid
forward
for
additional funding.
oCorrection
Factor
—
No
correction
factor
mechanism
will
be
used
during
the
ClO
period.
For
clarity,
this
means there
will
be
no
carry forward
of
under
or
over recoveries
between years
or
into
the
PC13
period.
There
will
also
be no
correction
factor
brought forward
from
the
SBP
period.
Ring4encing
—
The
Regulator agrees
that
there
will
be
no
ring
fencing
of
operational
expenditure
during
the
PC1O
period.
This
applies
specifically
to
(a)
the
Business
Improvement Programme
(BIP)
(b)
the Voluntary
Early
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