Consultation and Notice on proposed licence modifications to reflect the RP6 price control extension

Published:

Consultation opened on . Closing date at 17:00.

Summary

We are proposing several licence modifications detailed below. In our RP7 final approach document we concluded that it was appropriate to extend RP6 by one year to allow further time for NIE Networks to prepare its RP7 Business Plan. This allows NIE Networks further time to address issues relating net zero (including decarbonisation and incorporation of renewables).

Today we launch a consultation on proposed licence modifications to the NIE Networks Transmission and Distribution licences.

The price control review sets new limits on the revenue that NIE Networks can recover from customers in order to operate their business for an additional year than was originally planned. The table below provides an overview over the different types of licence modifications we propose to make.

Type of Licence Modification

Licence

 

Distribution

Transmission

Proposed modifications to extend the RP6 period

Modify the definition of RP6 to extend the duration of the price control by one year.

Annex 2 paragraph 1.1

Annex 2 paragraph 1.1

Proposed modifications to allowances, rates and amounts for the extension year

Modify the Distribution Business allowed capex per RAB_D5Y to include a determined amount for the year t = 2025.

Annex 2 paragraph 4.32 Table 3

na

Modify the Distribution Business allowed capex per RAB_DN to include a determined amount for the year t = 2025.

Annex 2 paragraph 4.34 Table 4

na

Modify the Distribution Business allowed capex per RAB_TN to include a determined amount for the year t = 2025.

na

Annex 2 paragraph 4.32 Table 3

Modify the Distribution Business allowed capex per RAB_T5Y to include a determined amount for the year t = 2025.

na

Annex 2 paragraph 4.32 Table 3

Modify the Distribution undereaves allowance unit cost (UAU_2016) to include a determined amount for the year t = 2025.

Annex 2 paragraph 4.35 Table 5

na

Increase the constraint on the determination of additional allowed capex for trials to assess and demonstrate innovative future investment.

Annex 2 paragraph 4.38(c)

Annex 2 paragraph 4.35(e)

Modify the Distribution Business first metering fixed allowance (FMFAt) to include a determined rate for the year t = 2025.

Annex 2 paragraph 4.42 Table 6

na

Modify the Distribution Business second metering fixed allowance (SMFAt) to include a determined rate for the year t = 2025.

Annex 2 paragraph 4.44 Table 7

na

Make provision for the determination of additional metering allowance unit cost for additional Metering category C.

Annex 2 paragraph 4.46 Annex 2, add paragraphs 4.46A, 4.46B and 4.46C

na

Modify the aggregate amount metering category C ‘Meter Replacement for theft’ to take account of decisions to date under Annex 2 paragraph 4.50 of the distribution licence and the additional year of RP6.

Annex 2 paragraph 4.48(a)

na

Modify the real price effects & productivity factors (RPEPFt) to include a determined rate for the year t = 2025.

Annex 2 paragraph 4.52 Table 9

na

Modify the Distribution Business allowed opex amount (AOt) to include a determined rate for the year t = 2025.

Annex 2 paragraph 6.13 Table 10

Annex 2 paragraph 6.13 Table 4

Modify the pension deficit amount (P_2016t) to include a determined rate for the year t = 2025.

Annex 2 paragraph 7.1 Table 11

Annex 2 paragraph 7.1 Table 5

Proposed modification of dates to apply to the extension year

Modify the definition of additional allowed capex (ACDR_Xt) to include amounts determined for the year t = 2025.

Annex 2 paragraph 4.38(d)

na

Modify the definition of allowed opex other amount to include amounts determined for the term NESt for the year t = 2025.

Annex 2 paragraph 6.15

Annex 2 paragraph 6.15

Modify the definition of the correction factor amount (Kt) to include amounts calculated for the year t = 2025

Annex 2 paragraph 11.1(b)

Annex 2 paragraph 11.1(b)

Modify the time when the charge restriction conditions cease to apply to the 1 October 2025.

Annex 2 paragraph 15.2

Annex 2 paragraph 15.2

Note:  na – not applicable to the relevant licence

Overview of proposed modifications

The purpose of the modifications is to extend RP6 by one year to allow further time for NIE Networks to prepare its RP7 Business Plan.  This allows NIE Networks further time to address issues relating net zero (including decarbonisation and incorporation of renewables).

We have included a detailed commentary for the reasons and effects of the proposed licence modifications within Chapters 4-5 inclusive of our licence modification consultation.  The relevant chapters for the reasons and effects are as follows:

  • Chapter 4- Reasons and Effects
  • Chapter 5- Reliability Incentive

In addition, this licence consultation is complemented by 4 annexes which are outlined below and may be accessed at the respective links. 

Annex

Annex Title

Annex A

Proposed Article 14 modifications to Annex 2 of the Distribution Licence

Annex B

Proposed Article 14 modifications to Annex 2 of the Transmission Licence

Annex C

Notice under Article 14(2) of the Electricity (Northern Ireland) Order 1992 – Modifications Proposed to Annex 2 of the Distribution Licence Held by Northern Ireland Electricity Networks (Ltd)

Annex D

Notice under Article 14(2) of the Electricity (Northern Ireland) Order 1992 – Modifications Proposed to Annex 2 of the Transmission Licence Held by Northern Ireland Electricity Networks (Ltd)

 

Submission of Consultation Responses

This is an open consultation paper.  We invite stakeholders to express a view on any particular aspect of the paper or any related matter.  Responses should be received on or before 12 noon on 24 February 2023 and should be addressed to:

Sean Lyons

Finance and Network Assets

Queens House

14 Queen Street

Belfast

BT1 6ED

Tel: 028 9031 6341

Our preference would be for responses to be submitted by e-mail.

Email: Electricity_Networks_Responses@uregni.gov.uk with cc to sean.lyons@uregni.gov.uk

Your response may be made public by us.  If you do not want all or part of your response or name made public, please state this clearly in the response by marking your response as ‘CONFIDENTIAL.’

If you want other information that you provide to be treated as confidential, please be aware that, under the FOIA, there is a statutory Code of Practice with which public authorities must comply and which deals, amongst other things, with obligations of confidence.  In view of this, it would be helpful if you could explain to us why you regard the information you have provided as confidential.

Information provided in response to this consultation, including personal information, may be subject to publication or disclosure in accordance with the access to information regimes (these are primarily the Freedom of Information Act 2000 (FOIA)  and the Data Protection Act 2018 (DPA)).

As stated in the GDPR Privacy Statement for consumers and stakeholders, any personal data contained within your response will be deleted once the matter being consulted on has been concluded though the substance of the response may be retained.

This document is available in other accessible formats, such as large print, Braille, audio cassette and a variety of relevant minority languages if required.  Please contact Sean Lyons on either 028 9031 6341 or email: Electricity_Networks_Responses@uregni.gov.uk with cc to sean.lyons@uregni.gov.uk

Ifappropriate, we can have individual discussions with interested parties.  Please contact us if you consider this to be more suitable.

 

 

 

Ways to respond

Email address
Postal address
Utility Regulator
Queens House
14 Queen Street
Belfast
BT1 6ED