10/05/2002

NIE and Ofreg engage in charged debate

Northern Ireland Electricity (NIE) has asked the electricity regulator, Ofreg, to revise the initial proposals for its regulatory review of NIE's Transmission and Distribution operations.

The Electricity Regulator wants to see bills fall by £27 a year for the average household. However, NIE has warned that 300 jobs could be lost under the plans.

NIE has already rejected Ofreg's initial proposals, saying they would not allow the company to make essential investment expenditure to ensure customer standards and service. The review determines the level of expenditure allowed on the electricity network during the next five years.

NIE said that Ofreg's proposals, which were issued in March, would drastically reduce their allowed investment over the next five-year period saying that under £180m would be enough. However, NIE said it would cost close to £300m to run the business over that time.

NIE spokesman Robin Greer said it was unfair to compare Northern Ireland prices to those in Britain.

However, Electricity Regulator Douglas McIldoon hit back saying he couldn't understand why NIE "cannot get it into their heads that all we are asking them to do is to improve at the same rate as other companies in the United Kingdom".

(MB)


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