Utility Regulator refers NIE price control to the Competition Commission

A Utility Regulator spokesperson said:

“Towards the end of last year, Northern Ireland Electricity (NIE) rejected our price control determination (known as RP5) for the next five-year period.  Consequently, we have today referred this matter to the Competition Commission for its determination within six months.  This determination will be final and binding.   

“We will now assist the Competition Commission with its investigation and we expect that it will also seek views from other interested parties.”

NIE owns the electricity network in Northern Ireland.  Charges for the use of this network typically account for 20-30% of electricity bills.  Given that this business is a natural monopoly, the Utility Regulator sets price controls to protect consumers whilst ensuring that NIE can efficiently finance its licensed activities.