We have published our proposals for NI Water’s 2027/2028 allowed revenue and price limits.
NI Water’s current price control, PC21, was set to run for a six-year period from April 2021 until March 2027. PC21 has since been extended for a further year to allow stakeholders more time to prepare for and develop the next price control.
As a result, we are required to set the price limits for NI Water for the extension year, based on our determination of allowed revenue. Our proposals are primarily based on a roll-forward of the allowance set for the original final year of PC21 (2026/2027). We consider this approach to be appropriate, as undertaking a detailed line-by-line cost review would undermine the intended purpose of keeping the extension as simple as possible.
However, NI Water requested adjustments to its allowed revenue in certain cost areas where it considers it has been disadvantaged by the extension of the price control. This mainly impacts the allowed revenue for interest payments on its capital financing requirements.
We propose to accept NI Water’s adjustments as we consider they are consistent with the PC21 determination approach and only reflect updates to the interest rate and inflation data used at that time.
We have updated the NI Water financial model with these adjustments. This provides a total of £693 million (nominal) in allowed revenue for the 2027/2028 year, and overall price limits K adjustment factor of 3.4% in real terms (before inflation).
We are consulting on these proposals, and we would encourage you to make your views known to us. It is important that we are provided with a range of responses that will help us deliver the most robust and informed decisions for the PC21 price control extension.
The consultation is open until 5:00pm on 24 July 2026. Further details on the draft determination and details of how to response, please visit our consultation section.
Following our review of the consultation responses, we plan to publish our decision on NI Water’s 2027/2028 allowed revenue and price limits in August 2026.