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.
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.