The Utility Regulator today publishes a consultation paper on the possible cancellation of the remaining Generating Unit Agreements (GUAs) in Northern Ireland.
GUAs are contracts between Power NI Ltd’s Power Procurement Business (PPB) and electricity generators in Northern Ireland. PPB manages the GUAs on behalf of consumers and the net benefit or loss made by PPB is passed to consumers as an element of the Public Service Obligation (PSO) levy.
Our principal objective is to protect the interests of consumers and, in doing so, we have kept under review the value of these contracts to consumers. This consultation reflects our economic analysis of the value of the GUAs to consumers. This analysis forecasts that the cancellation of these GUAs from 2015 would deliver £3.8 million of savings per annum to consumers until 2023 – when the GUAs must expire.
Responses from this consultation will be reviewed, together with an updated economic analysis, to inform our decision on this matter.