NI Water ‘continues to make progress but has challenges still to meet’ says Utility Regulator

The Utility Regulator has published its independent assessment of how Northern Ireland Water Limited (NI Water) has performed during 2010-11.

The Utility Regulator’s Cost and Performance Report on NI Water identifies continuing progress by the water company.

During 2010-11 NI Water exceeded it operational efficiency targets by £6 million, achieved its highest ever level of drinking water quality, performed favourably against sewage quality outputs and improved its Overall Performance Assessment (OPA) score - a benchmark used to compare the performance with water companies in Great Britain.

Shane Lynch, Chief Executive of the Utility Regulator said:

“As the independent economic regulator, our job is to ensure that water and sewerage consumers receive value for money services. The Cost and Performance Report is our assessment of how well efficiency targets are being met, the quality of service provided and the company’s financial performance. There is no doubt that NI Water continues to make progress in terms of managing its costs and improving its performance.”

“The Report also draws attention to areas where there is scope for improvement. A significant efficiency and performance gap, still exists between NI Water and other water companies in Great Britain. NI Water is still 39% less efficient than the benchmarked companies in England and Wales. There was also an underspend of £31 million on the capital programme during 2010-11”.

NI Water does however face a number of constraints arising from the Government’s public expenditure classification, which other water companies do not have to contend with. Such constraints, if not addressed, will impact on the speed with which NI Water closes the efficiency and performance gap relative to other water companies.

Mr Lynch continued:

“The company also has challenges to address”.

“No report on NI Water’s performance during 2010-11 would be complete without reflecting on the company’s generally poor performance during the freeze/thaw incident that caused so much misery for many consumers last winter. We continue to monitor the company’s delivery of the actions identified in our report on the freeze/thaw incident.”

“We expect the company to make all the necessary preparations over the coming days and weeks to minimise the impact of any adverse weather on service to the consumer.”

“More broadly, the company has previously set itself ambitious targets for improving its performance relative to water companies in Great Britain. We welcome that ambition and urge the company to remain focused on improving its performance so that Northern Ireland consumers can benefit.”

The Cost and Performance Report is available by clicking here

ENDS

For further information, contact Barbara Stevenson on 028 9031 6343 or 07794 965922.