Utility Regulator consults on PC28, despite ongoing funding gap

Northern Ireland’s Utility Regulator is consulting until 31 October on its approach to PC28, Northern Ireland Water’s fifth price control since the government-owned company was set up in 2007.

The six-year review 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.”

The final determination will be published in January 2028 with the period beginning on 1 April 2028.