A core function within the UR is to set Price Controls for regulated businesses. These price controls constrain how much of its costs the regulated businesses can pass through to their customers. In the domestic electricity market, the UR sets price controls for the incumbent supplier, Power NI.
Power NI submit their proposed costs for running the business to the UR. These costs are scrutinised by the UR and the appropriate cost level approved. The UR also sets the profit margin for Power NI i.e. the level of profit which they are allowed to make from their price-regulated customers. The price-regulated threshold is for customers with consumption under 50MWh per annum. This currently includes domestic and small Industrial & Commercial customers. The latest Price Control documentation can be found below.