Electricity Network Charages Fall From 1st October
The Utility Regulator has now released details of electricity network and other pass through charges which will apply to commercial users from 1st October 2013. ManufacturingNI estimate that these will lead to a modest reduction for the average industrial user of something in the region of 0.5%-1.0%. There has been a variety of changes in the range of elements which make up the pass through element of bills. While Use of Service charges have remained largely unchanged there has been a reduction of 15.1% in System Support Charges, and a major increase of over 36% in charges relating to the Moyle interconnector, which has been in a state of disrepair for some time and losing revenue. The largest impact has come from a 35% reduction in Public Service Obligation Charges in Northern Ireland and reductions of over 5% on imperfections charges.
Network costs for the year 2013/14 are however only provisional in many ways. This year was due to see the start of a new charging period for network operator NIE, but they have rejected the Regulators determination and appealed to the Competition Commission, who are due to deliver their preliminary findings by the end of October. Should the Competition Commission decide to allow some of the additional charges claimed by NIE, these will be recovered retrospectively from October 2014. This could potentially lead to much higher charges in the future. Full details of the Regulators determination can be found here:- http://www.uregni.gov.uk/uploads/publications/Tariff_Information_Note_-_Aug_2013_-_Final.pdf