Utility Regulator

The Utility Regulator has today published an information note on regulated tariff charges. Please note that this paper is with regard to the regulated network charges which are part of the overall charge that customers pay only.  These charges currently make up 24% of a domestic customers total bill.

Electricity Suppliers in Northern Ireland pay a number of regulated charges which they in turn must pass on to their customers.  Regulated charges for the use of the electricity distribution network in Northern Ireland and a levy known as the Public Service Obligation (PSO) are set by NIE and SONI, and the maximum amount recoverable is approved by the Utility Regulator.  Other regulated charges, including Capacity Payments, associated with the Single Electricity Market (SEM) are set by the Market Operator (SEMO) and the maximum amount recoverable is approved by the SEM Committee.  The purpose of this note is to communicate the approved changes which will take effect from 1 October 2011, together with explanations for these changes.

NIE, SONI and SEMO set tariffs to reflect the total amount that can be recovered in the forthcoming tariff year and forecast demand.  These tariffs vary between individual customers depending on load profile, maximum demand, connection voltage, etc.  NIE’s revised tariffs are now published on NIE’s website.  SONI’s revised tariffs for use of the transmission network are now published on the SONI website.

Electricity bills will also include wholesale energy costs, the climate change levy (for businesses only), supplier charges and VAT.  Energy costs will vary between suppliers and customers depending on the timing and extent of hedging contracts.