NISEP Framework Document 2013-14 Decision Paper

Published date23 October 2012
Energy SectorSustainability
Decision Paper on a Revised Framework
Document for the NISEP 2013-14
October 2012
1. Background
1.1 The Northern Ireland Sustainable Energy Programme (NISEP) is a voluntary
incentivised programme of energy efficiency/renewable energy schemes,
funded by electricity consumers through the electricity system in the form of a
Public Service Obligation. When the NISEP was introduced in 2010-11,
following a review of its predecessor the Energy Efficiency Levy, it was to run
for a period of three years after which its continuation would be the subject of
a further review.
1.2 The Department of Enterprise, Trade and Investment (DETI) has recently
been consulting on policy proposals for a new Energy Bill for Northern Ireland
which includes consideration of a new energy efficiency measure that has the
potential to replace the NISEP. Review of the NISEP has therefore been put
on hold for the time being, pending the outcome of the DETI consultation, but
in the meantime the NISEP will continue for at least a further year i.e. 2013-
14.
1.3 The NISEP is operated on an annual cycle with schemes running from April to
March. Organisations registered as Primary Bidders to the Programme submit
bids in the autumn of each year for schemes to begin the following April.
1.4 The NISEP Framework Document provides the rules and procedures that
must be followed by participants in the NISEP. A revised version of the
document is published each year, to apply to schemes being undertaken in
the coming year, to ensure that the information contained within it remains up
to date. This process includes an annual review of the cost-effectiveness
targets for categories of schemes to take into account the previous year’s
performance.
1.5 The Utility Regulator does not consult every year on this technical document
but, as there were a few more significant changes than usual, the UR decided
to issue a consultation document in August 2012 outlining the changes being
proposed for the coming year. The consultation document, along with a draft
Framework Document, was published on the UR’s website and sent directly to
key stakeholders.
1.6 As explained in the consultation document, most of the revisions to the
Framework Document for the coming year are in response to one of the
following:
i. The decision to roll the NISEP forward for another year but retain the
costs at a similar level to the 2012-13 NISEP;
ii. The introduction of the Renewable Heat Premium Payment by DETI;
iii. Lessons learnt from the previous year.
1.7 The purpose of this paper is to present the decisions made following analysis
of the responses to the consultation and to present a finalised Framework
Document which will apply to the NISEP year commencing 1 April 2013.
1.8 This decision paper is structured as follows:
i. Section 2 outlines the overall decisions and the next steps;
ii. Section 3 outlines the key issues raised by respondents and the UR’s
response to them;
iii. Appendix 1 lists the respondents to the consultation;
iv. Appendix 2 contains the new Framework Document for 2013-14
(published as a separate document).

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