NIE's T&D business plan suggests further price increases for customers

OFREG publishes a consultation paper which considers NIE’s estimates for operating costs and capital expenditure on its Transmission and Distribution business up to 2006/2007.

The paper is part of the process of reviewing the Price Control for NIE’s Transmission and Distribution business for the five-year period from April 2002.

Commenting William McIlhatton, Director of the Price Control Review team said:

“Whilst we have not, at this stage, taken any view about the appropriateness or otherwise of the information received or whether the costs are reasonable, on the basis of figures submitted by the company, it is estimated that NIE’s capital and operating expenditure proposals would increase charges for the use of its network by 8.3%. These charges account for 40% of the final electricity bill to domestic customers and 30% of the average NI bill.”

“Our objectives are to improve the quality of supply and to reduce prices to customers. It is therefore important that the Price Control sets challenging targets for NIE. As the review progresses it is necessary to take an independent view as to the appropriate level of operating costs and capital expenditure. Responses to this consultation paper will help to inform these judgements. Consultants have been appointed to assist with the analysis of the operating costs and capital expenditure. I am now seeking views from those with an interest in these issues, including customers, their representatives, and other interested groups as well as the company itself.”

The paper “Review of the Price Controls for Northern Ireland Electricity plc - Business Plan for the Transmission and Distribution Business” can be downloaded from below and copies are also available from:

OFREG, Brookmount Buildings, 42 Fountain Street, Belfast, BT1 5EE, tel. 028 9031 1575, fax. 028 9031 1740.

For further information or to arrange an interview with William McIlhatton, please contact Nick Carson on 028 9127 5965 or 07711 482807.