NIE unable to accept RP5 price control


Northern Ireland Electricity (NIE), the network company, has advised the Utility Regulator that regrettably it is unable to accept the Utility Regulator’s proposed terms for the RP5 price control.

A spokesperson for NIE, said, “Since both NIE and the Utility Regulator consider that the present price control requires modification, NIE now expects the Utility Regulator to refer the matter to the Competition Commission.

“NIE has not taken this decision lightly.  It has worked diligently throughout the price review process which has been ongoing for over two years in order to provide a robust business plan with extensive and detailed supporting information to facilitate the Utility Regulator to determine a price control that will enable NIE to provide an adequate service to its customers over RP5 and for the foreseeable future, and to finance its activities efficiently.  But the Final Determination does not come close to achieving that objective. 

“The allowances proposed by the Utility Regulator fall substantially short of the amounts required to enable NIE to meet its statutory and licence obligations and to carry out the necessary programme of work for RP5 to deliver the level of service customers expect.

“Moreover, the Utility Regulator’s proposals rely on regulatory arrangements which depart from the well-established system of regulation for network utilities that applies in the rest of the UK, notably in respect of their emphasis on ex post assessments and retrospective adjustments.

View NIE's response to the Utility Regulator