NIE Networks transmission and distribution final price control (RP6) determination published

30 June 2017

The Utility Regulator today publishes its final price control determination for NIE Networks (RP6) for the period 2017-2024.  The publication follows a consultation on our draft determination (which was published in March 2017). Responses to the consultation can be found within the RP6 final determination section.  

Key elements of our final determination are as follows:

*  allows for £657 million of network investment over the next 6 ½ years and in addition makes provision for the construction of the second north-south electricity interconnector;
*  identifies £134m million (or 9%) of cost savings by NIE Networks compared to the company’s business plan;
*  puts in place new performance indicators and a network reliability incentive trial to ensure customers benefit from improvements in service; and
*  results in a small decrease over the 6 ½ years of RP6 in the network charges paid by consumers.  By 2023/24 this reduction would be £6 per annum for domestic customers compared to network charges at the end of RP5. Savings for the largest energy users are likely to be more significant and up to £5,000 per annum for the very largest by 2023/24 (Note 1).

Commenting on the publication, Utility Regulator Chief Executive Jenny Pyper said:

 “The publication of our determination is a significant milestone.  It puts in place a price control worth nearly a billion and a half pounds and sets out the direction of the electricity network in Northern Ireland over the next six and a half years.  It provides for over half of billion pounds of investment in the network, puts in place new monitoring arrangements to ensure customers see improvements in service and supports innovation."

Our job is to make sure that NIE Networks is provided with the revenue it needs to run the network at the most efficient cost to the consumer.  The price control will see reductions in network charges and a cost saving of 9% in revenue will be passed onto customers in lower bills."

Today also marks the culmination of an extensive process of consultation with multiple stakeholders and I am grateful to all those who took part during the development of the price control.  Throughout this process there has been constructive engagement with NIE Networks and I hope they will view the outcome as a fair but challenging one.

The licence modifications, to give effect to our price control decisions, have also been published for consultation over the next 28 days. RP6 documentation and related information, including technical annexes to the main report, can be accessed by clicking here.

Written responses to our licence modification consultation should be received no later than the 28 July 2017 at 5pm and should be addressed to:

Alan Craig

Finance and Network Assets

Utility Regulator

Queens House

14 Queen Street



Tel: 028 9031 1575



(1) Excludes RPI inflation and costs associated with network capacity growth projects which are uncertain.