PC21 Draft Determination

On 30 September 2020, we published our PC21 price control draft determination for NI Water and launched a consultation on our proposals.

Our draft determination was produced following our review and consideration of NI Water’s Business Plan submission and engagement with the water sector principal stakeholders (CCNI, DfI, NIEA and DWI).  Key aspects included:

  • The introduction of new consumer service measures to drive continuous improvement in service.
  • Operational cost efficiency equivalent to 2.11% per annum compared to 0.78% proposed by the company, which would save consumers £73m over the PC21 period.
  • A cost of capital of 1.7% (average) over PC21 applied to an RPI indexed RCV, which was lower than the company’s Business Plan and would save £184m in billed revenue.
  • Capital investment of £1.7bn which was 11.9% less than the company’s proposals for PC21 but a 74% increase from PC15, to begin to address the lack of capacity in wastewater systems and address development constraints in 49 areas by the end of PC21.
  • A long term view of tariffs taking account of the need to limit the increase in regulatory capital value as additional investment is made.
  • Price limits with a weighted average cost increase of zero in real terms.  Within this, typical bills for unmeasured non-domestic consumers would have risen by 16% (£47) by the end of PC21.

Our draft determination documents, including a summary document, can be accessed through the links in the table below and further details on the consultation process can be found on our consultation web page.


PC21 Draft Determination – Main Report
Key point briefing
Annex AFinancing Investment
Annex BSources of Revenue
Annex CMemorandum of Understanding
Annex DConsequent Written Agreement
Annex EOutputs
Annex FAsset Serviceability
Annex GNominated Outputs List
Annex HPC15 Out-turn Report
Annex ICapital Investment
Annex JRegional Price Adjustments PC21 (CEPA)
Annex KOpex and Capex Frontier Shift
Annex LPC21 Efficiency Modelling (CEPA)
Annex MChange Control Protocol
Annex NFinancial Model
Annex OCost of Capital (First Economics)
Annex PPension Report by the Government Actuary Department (GAD)