Utility Regulator confirms approach to NI Water’s next price control

(by Karma Loveday)

Following its September consultation, Northern Ireland’s Utility Regulator has confirmed its approach to PC28 — Northern Ireland Water’s fifth price control since the government-owned company was set up in 2007.

The review, for 2028-2033, will set all the usual price review elements, including outputs to be delivered and revenue allowed. In the absence of domestic water bills, NI Water is currently funded 70% by government subsidy, 20% by business charges, and 10% by road drainage charges.

The Utility Regulator noted that under the current price period, PC21, the subsidy provided by the Department for Infrastructure has fallen short of the regulatory allowance. The gap currently stands at 11% of capex investment, and is projected to increase to around 18% by the end of PC21. “As a result, a backlog is building up of work that NI Water should carry out,” the Utility Regulator said.

It continued: “At present, we understand that a funding gap will continue into PC28. Utility Regulator nonetheless is legally obliged to set a price control for PC28 based on what NI Water needs and can realistically deliver, without any regard to government funding availability. Accordingly, we propose to set a PC28 revenue allowance for NI Water in line with what it requires to meet its statutory obligations in PC28.”

NI Water will submit its PC28 business plan in November 2026. The Utility Regulator will publish a draft determination for consultation in June 2027, followed by a final determination in January 2028. The period begins on 1 April 2028.