The Utility Regulator for Northern Ireland has published its latest Cost and Performance Report for NI Water covering the PC13 price control period of 2013-2015, representing NI Water’s second regulatory price control.
The Cost and Performance Report outlines the Regulator’s independent assessment of how the company performed over the period against the efficiency targets and key performance indicators outlined in the PC13 Final Determination and Monitoring Plan. Where appropriate, the report also compares NI Water’s performance with companies in England, Scotland and Wales.
Commenting on the water company’s overall performance, the Regulator said:
“We are pleased to report that, from assessing the 2013-2014 and 2014-2015 data that in overall terms, NI Water has broadly delivered on the annual targets set by us for PC13. The company outperformed its operational (opex) efficiency target, while at the same time improving levels of service.”
The Report shows that NI Water’s opex costs reduced in nominal terms from £190.7m in 2013-2014 to £187.5m in 2014-2015. This translates into a £3.2m nominal fall, and once inflation is taken into account, this represents a 3.5% real terms reduction in the day-to-day running costs of the business.
NI Water used its full capital investment budget in PC13 - the Regulator’s assessment of current and projected investment indicates that the company has delivered value for the capital committed over PC13.
NI Water did not meet the 2014-2015 Overall Performance Assessment (OPA) target, primarily due to the effects of the industrial action. Had this been excluded, the company would have met its target for interruptions to supply greater than 12 hours. Despite this, NI Water still ended 2014-2015 with a higher OPA score than at the start of PC13. However, the report says there is still scope for further service improvement which is not limited to OPA measures only.
The company has met most of the Key Performance Indicators (KPIs) set out by the Regulator in the PC13 Monitoring Plan, including 7 out of 14 consumer service measures and all of the water and sewerage quality KPIs. It has delivered the majority of output measures and maintained stable serviceability.
Working with government to secure medium term funding key to sucess of PC15 business plan
NI Water has welcomed the Utility Regulator’s positive report - NI Water Director of Finance & Regulation, Ronan Larkin, said:
“This report recognises the significant and continuing progress that NI Water has made during the 2013-2015 period.”
“It demonstrates that we have outperformed against our efficiency targets whilst at the same time delivering a major capital programme, reducing leakage, reducing environmental pollution and achieving our best ever results in both drinking water quality and waste water compliance. This reflects the commitment of our workforce in delivering improved service to our customers.”
Mr Larkin said the firm’s current six year business plan to 2021 is focussed around improving service to all its customers and being more efficient in how this is done. Working with government to secure the necessary medium term funding settlement that would underpin delivery of investment in better services for all customers was key to the success of NI Water’s PC 15 plan for 2015-2020, he added.