In September 2018, we published a consultation on the PPB price control to apply from 2019 to 2023, to replace the existing price control, in place since 2023.
Following this consultation, to which two responses were received, a final determination and corresponding licence modifications consultation were published in January 2019.
Following the receipt of one response to this consultation,we are publishing a decision on the licence modifications to enact the final determination.
The PPB was established as part of the privatisation of the Northern Ireland electricity industry as a guaranteed purchaser following the creation of long-term power purchase contracts. PPB purchases energy from independent generators under these long-term contracts, while also making payments for availability. PPB sells this energy into the SEM, while also retaining capacity and ancillary services revenue. Any mismatch (either positive or negative) between PPB’s costs and revenues will be rebated to or collected from customers via the NI Public Service Obligation (PSO) levy.
Under the final determination, the costs of running PPB will reduce from £4.6m to £3.8m, with an additional gain sharing mechanism whereby PPB retain a percentage of any annual surplus on the long term contracts. The contracts expire in September 2023, and can be terminated, with six months’ notice, by us during this period. This is therefore the final price control for PPB, and will apply from May 2019 until the contracts expire or are terminated.
Copies of all documents will be made available in large print, Braille, audio cassette and a variety of relevant minority languages if required.