PC15 Approach Document
| Published date | 26 November 2012 |
| Year | 2012 |
| Energy Sector | Water |
Price control for water and sewerage services
2015-21
Our overall approach
October 2012
UTILITY REGULATOR WATER
1
About this document
This document sets out our approach to PC15 as follows:
Section 1 outlines our role and the roles of the other principal stakeholders.
Section 2 provides context, covering: economic regulation of NI Water; the impact of
NI Water’s governance arrangements and how we work within public expenditure
limits.
Section 3 provides an overview of previous price controls and sets out the case for a
six year duration for PC15.
Section 4 sets out our approach to some key areas which must be addressed as we
develop and deliver PC15 including: consumer engagement; delivering sustainable
outcomes; targeting investment and managing risk; the scope for efficiencies; finance
and tariffs; information requirements; and how we will work with principal
stakeholders.
Section 5 sets out the key stages and timeline for PC15.
UTILITY REGULATOR WATER
2
Contents
Foreword 2
1 Introduction ............................................................................... 4
1.1 Our role in protecting consumers’ interests ............................................. 4
1.2 Other principal stakeholders ................................................................... 5
2 Context ....................................................................................... 7
2.1 Economic regulation of NI Water ............................................................ 7
2.2 Overview of the price control process ..................................................... 7
2.3 NI Water’s governance arrangements..................................................... 8
2.4 Working within public expenditure limits .................................................. 9
3 Overview of our price controls .............................................. 10
3.1 PC10 (covering 2010-13) ...................................................................... 10
3.2 PC13 (covering 2013-15) ...................................................................... 10
3.3 PC15 – an opportunity for a longer term strategic view ......................... 11
3.4 Aims for PC15 ...................................................................................... 13
4 Our approach to key areas ..................................................... 15
4.1 Introduction ........................................................................................... 15
4.2 A proportionate approach ..................................................................... 16
4.3 Consumer engagement ........................................................................ 17
4.4 Delivering sustainable outcomes .......................................................... 18
4.5 Targeting investment and managing risk .............................................. 22
4.6 The scope for efficiencies ..................................................................... 24
4.7 Finance and tariffs ................................................................................ 26
4.8 Information requirements ...................................................................... 27
4.9 Working with the principal stakeholders ................................................ 28
5 PC15 Phases and programme details ................................... 30
5.1 Phase 1: Our approach to PC15 .......................................................... 30
5.2 Phase 2: Developing the building blocks of the PC15 Business Plan. .. 31
5.3 Phase 3: NI Water’s business plan ....................................................... 34
5.4 Phase 4: We determine the PC15 contract, outputs and price limits to
align with the public expenditure budget allocation ...............................35
To continue reading
Request your trial