Consultation on licence for NI Water Ltd released

The Department for Regional Development has placed the draft licence for Northern Ireland Water Limited (NIWL) under public consultation.

The draft Order, which is presently going through Parliament, provides for the Department to issue a licence, to govern the appointed company’s operations.

The Licence will come into force on April 1 2007 and will be enforced by the new Economic Regulator.

The licence details arrangements for setting price limits for NIWL, how these are to be incorporated into customers’ bills, for ensuring that the supply and quality of service are maintained and that the interest of customers are protected.

The document marks a key step towards radical changes to Northern Ireland’s water and sewerage services.

The licence gives effect to the full range of Government policy through the imposition of a series of conditions on NIWL for the delivery of water and sewerage services within the framework set by the draft Order.

Minister David Cairns said: “The draft Licence published today for consultation is a key document governing the operations of the new company – Northern Ireland Water Limited. In developing this licence we have taken careful account of the views of the future economic regulator and the future consumer representative. The result is a licence that takes account of best regulatory practice, builds on licensing in England and Wales and is tailored to our own circumstances in Northern Ireland.

“This draft Licence will protect customers’ interests through robust regulatory scrutiny whilst setting an appropriate framework to enable the company to operate effectively and sustainably.”

He continued: “As well as building on best practice elsewhere, the draft licence puts in place arrangements for the package of measures previously announced by Government to ensure that domestic charges are in line with average bills in England and Wales in the first three years and arrangements for the new charges to be phased in over the same period. The draft Licence also provides for the first Price Review by the Economic Regulator in 2009.”

The draft Licence is accompanied by an initial Statement of Regulatory Principles and Intent from the Chief Executive of the Northern Ireland Authority for Energy Regulation, in advance of its taking on the role of Economic Regulator for Northern Ireland’s water industry.

The statement does not bind the future regulator but sets out, at a high level, the approach, intent and principles that he expects the Authority to adopt for the independent, economic regulation of NIWL.

(EF)