In our RP5 (Regulatory Period 5) Draft Determination, published on the 19 April 2012, we indicated that we had initiated an investigation into NIE T&D accounts to determine whether or not any out performance had resulted from a change in capitalisation practice. The intention of this investigation was to provide us with a better understanding of the level of any consequential ‘double payment’ that consumers may have funded for the RP3 and RP4 periods. We also indicated that we intended to complete this investigation during the three-month consultation period. The purpose of this note is to provide an update on the status of this investigation.
The process of information gathering and analysis is taking longer than the consultant auditors first anticipated, and we now consider that we will not be in a position to publish the auditor’s final report before the end of the consultation period.
We have however, obtained from our consultant auditors an interim report which has informed us of their findings to date. This interim report suggests that a change in capitalisation practice has resulted in a material ‘double payment’ by consumers. However, it is important to note that following our written request, NIE T&D has not yet provided us with detailed comments on the factual accuracy of this interim report, and we have not yet formally discussed the report with NIE T&D.
Once the investigation by our consultant auditors is complete, NIE T&D will be given the opportunity to discuss the final report and to comment on its factual accuracy. Once the auditors have considered NIE T&D’s comments, we intend to publish the auditor’s final report together with our draft determination on this specific matter. We will invite responses to this draft determination for our consideration, prior to reaching a final determination.