The Utility Regulator today decided to place NI Water’s application for a revenue uplift (Interim Determination or ‘IDoK’) for the 2008 – 09 financial year, together with the Utility Regulator’s refusal on public record.
It will be our policy to publish all future applications, which must be made by the 15th September in relevant years, together with our response.
What is an Interim Determination or ‘IDOK’ ?
The process of adjusting charge caps (or allowed revenue) between Price Controls is known as an ‘Interim Determination’ or IDoK’. An interim determination is a process allowed in NI Waters’ licence. It facilitates an application by the company for an increase in its revenue under certain criteria. An interim determination may equally facilitate a reduction in the allowed revenue.
Why would this be necessary?
In a regulated business such as NI Water, with an obligation to supply, it could be necessary to amend price limits to take account of changes in legal obligations, such as a new water and environmental quality obligation. There may also be substantial and unexpected changes in costs and revenues that are outside the control of management. This could make it necessary to adjust the charge or revenue cap before the end of the regulatory control period to ensure the continued viability of NI Water. Such changes would be exceptional and we would need to be satisfied that they were also beyond the control of management.