PC21 Final Determination
| Published date | 13 May 2021 |
| Energy Sector | Water |
Water & Sewerage Services
Price Control 2021-27
PC21 Final Determination – Main Report
May 2021
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
This document sets out the Utility Regulator’s final determination of outputs and tariffs for NI
Water during the six-year period from April 2021 to March 2027. We have determined
efficient levels of operational and capital expenditure and the costs of financing this
expenditure. This will require revenue of £2.7bn over the PC21 period. A key objective of
the Price Control is to address the capacity of the sewerage network and treatment works
that result in environmental pollutions and act as a constraint on development. These issues
will not be addressed in full in PC21 and further investment will be required in subsequent
Price Controls before they are fully resolved. We have included additional revenue in PC21
to ensure that today’s consumers make a balanced contribution towards the repayment of
this investment.
Regulated utilities, regulatory community, consumers, their representatives and
representative and statutory bodies.
The PC21 price control sets targets for improvements in service to consumers and the
environment over the six-year period 2021-27. It provides a framework for sustainable
service delivery by NI Water and supports the investment necessary to allow the planned
development of housing and industry economic development that underpins the economy
and wellbeing of our society. New consumer measures and the implementation of a
programme of consumer best practice will underpin improved consumer service. PC21
continues to set challenging efficiency targets for NI Water and the return on capital
necessary to finance investment has been reduced to an average of 2.0% plus RPI. The
weighted average price limit (K factor) are zero for years 2 to 6 of PC21 in real terms relative
to RPI. This average price limit means that prices will rise in real terms for some groups of
consumers and fall for others.
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