Assembly extends Northern Ireland Water’s public funding

The Northern Ireland Assembly has approved an extension of public funding provisions for Northern Ireland Water to 2027.

Infrastructure minister, Nichola Mallon, last week put the case for an order extending the power for her department to pay a grant to Northern Ireland Water in lieu of domestic water charges. She explained the current subsidy is paid under article 213 of the Water and Sewerage Services (Northern Ireland) Order 2006, as amended by the Water and Sewerage Services Act (Northern Ireland) 2016, which has an end date of 31 March 2022. This followed the Executive’s agreement to the continuation of the policy of not implementing water charging for domestic use in October 2021.

Mallon said: “I am therefore bringing forward the draft Grants to Water and Sewerage Undertakers Order (Northern Ireland) 2022, which proposes to extend the period during which a subsidy may be paid to Northern Ireland Water to 31 March 2027… The five-year extension to 31 March 2027 gives the next Executive time to consider how the future of our water and sewerage services should be funded.”

The Utility Regulator has determined that NI Water will require investment of about £2bn over the six-year price control period from 2021 to 2027. Mallon said: “Sustained and secure levels of investment by the Executive over multiple price control periods will be required. This financial year is the first in many years in which Northern Ireland Water has been fully funded in line with the price control. I stress the importance of the need for Northern Ireland Water to continue to be fully funded in future years in order to improve the water and waste water infrastructure here," said Mallon.

"Clearly, a lack of funding would see those critical services become suboptimal, risking public health, curtailing economic growth and putting our environment at risk of pollution," she added.

Issues raised in the ensuing debate included capacity constraints, financial pressures on NI Water and alternative funding arrangements. But the grants extension was approved.