Media Release
An independent review of the electricity tariff-setting process, published today, has endorsed the regulator’s scrutiny of September’s new electricity prices, and has made wide-ranging policy proposals.
The review, carried out by Douglas McIldoon, was commissioned after the 10 September announcement of a 33.3% increase in electricity prices led to widespread public concern.
On the tariff-setting process, Mr McIldoon’s report says:
“The process followed was similar to the process which had been followed successfully in the past …; it was no less rigorous than in previous years. In this context the price increase was an inevitable outcome given the rising fuel prices and in that sense was justified.”
The report stresses the important role of the Consumer Council, and points out that the Council ‘should assume a role that is less implicated in the process of the tariff review, and more focused on the wider social context and implications of the review.’
More widely, Mr McIldoon’s report also addresses a series of broader questions about energy and regulatory policy.
Welcoming the report, Iain Osborne, Chief Executive of the Utility Regulator said:
“While the report can provide no consolation for Northern Ireland consumers who are currently paying higher electricity bills, there is the assurance that robust independent regulation is in place to continually challenge all aspects of costs and prices.
“ In this regard, we have already announced a review of electricity tariffs, and I am hopeful that a decrease in prices can be announced before Christmas.”
“I welcome the clarification of the role of the Consumer Council in the tariff-setting process. As Mr McIldoon stresses, it is unfair to expect the Council to second guess the regulator as it has neither mandate nor resources to do that.”
“The report includes a rich set of recommendations about wider policy. To the extent that these relate to regulation, we will reflect upon them over the coming months, beginning with a discussion at a Board meeting of the Utility Regulator next week. Many of Mr McIldoon’s proposals relate to Northern Ireland’s overall energy policy. I congratulate the Department of Enterprise, Trade and Investment for its current consultation on NI’s Strategic Energy Framework. This provides an ideal vehicle for considering Mr McIldoon’s proposals along with other inputs to that wide conversation.”
ENDS
Notes to Editors
1. The Northern Ireland Authority for Utility Regulation (the Utility Regulator) is the non-Ministerial Government Department responsible for regulating the electricity and gas industries and water and sewerage services in Northern Ireland.
2. A copy of the McIldoon Report and a related Questions and Answers document can be viewed
3. Media contact David Cullen at Weber Shandwick (028 90347306/ 0777 0886927).