Manufacturing NI Welcomes Competition Commission Decision On NIE Costs
MNI has welcomed the Competition Commissions provisional decision in the appeal by NIE against the Utility Regulators decision to limit network charges for the five year period to 2017. The Competition Commission have further reduced the level of expenditure that NIE are allowed from £1078m to £1009m – a 6.4% reduction over the five year charging period. This means that network costs will be even lower for local companies than those proposed originally by the Utility Regulator.
Commenting on the decision MNI Chief Executive designate Stephen Kelly said “This is great news for commercial users who will now pay lower network charges which are a significant element of electricity bills, and will go some way to reduce the premium which Northern Ireland companies are paying over their competitors in the Republic of Ireland, GB and elsewhere in Europe. It also provides an endorsement of the Regulator’s approach to NIE’s spending of customers money” MNI estimate that this decision will lead to significantly reduced increases in network costs until 2017, with savings for local companies in the region of 1% of total bills, although the total extent of the savings cannot be calculated until the Copmpetition Commission publish the full determination next week. A copy of the Competition Commissions provisional determination summary can be downloaded here:-