PC21 is the price control for NI Water for the five year period from 2021.
An important milestone was reached with the publication of the Approach document for the price control.
The PC21 Approach document describes four phases of our price control process and detailed the key milestones associated for each phase. The first three phases of the programme were delivered to schedule with the submission of NI Water’s Business Plan on the 31 January 2020. COVID19 has however impacted our ability to progress the assessment of NI Water’s Business Plan. As a result, we have now delayed the publication of our draft determination for PC21 until 24 September 2020 to provide sufficient time for us to properly assess the company’s submission. We have adjusted the remaining milestones accordingly and the amended timeline to completion of the PC21 determination process is shown in the table below. Formal notification of this decision was issued to all key stakeholders on 1 June 2020.
PC21 ‘minded to’ Approach to Efficiency
A key role of the Utility Regulator is to promote the efficient delivery of services to consumers by monopoly suppliers such as NI Water. We do this by benchmarking NI Water’s costs against comparable companies taking account of special factors such as the scale of the company and the local economy. We also consider how the efficiency of comparative companies might move over time. This work allows us to set achievable but challenging targets at each Price Control.
In preparation for PC21, we have published our PC21 Opex ‘minded to’ Methodology and PC21 Capex 'minded to' Methodology which we sent to the company on the 15 March 2019 following a period of consultation. More detailed approach papers were also shared concerning:
- PC21 CEPA Opex Efficiency Modelling Strategy Short Paper ,
- PC21 CEPA Opex Model Assessment Criteria Short Paper] and
- PC21 CEPA Options for Measuring Capital Efficiency Paper.
PC21 Information Requirements
The Utility Regulator’s PC21 Information Requirements were published on the 15 March 2019. These requirements ask NI Water to submit the information we need to set price limits for the 6 year period from 2021 to 2027, including its overall strategy for the delivery of water and sewerage services and supporting information on expenditure and outputs. The information requirements do not constrain the development of the company’s plan. It is for the company to develop its plans to provide an efficient and effective service which will meet the needs of its consumers, and to communicate this to the Utility Regulator. In response to these requirements, the company will submit its Business Plan for the PC21 period to the Utility Regulator at the end of January 2020.