ESB Annual Report 2012 - (Page 30)
30 ESB Annual Report 2012 - Energy for connecting you
NIE
NORTHERN IRELAND ELECTRICITY (NIE) IS RESPONSIBLE
IN NORTHERN IRELANDFOR THE PLANNING,
DEVELOPMENT, CONSTRUCTION ANDMAINTENANCE OF
THE TRANSMISSION ANDDISTRIBUTIONNETWORK AND
FOR THE OPERATION OF THE DISTRIBUTIONNETWORK.
OPERATING ENVIRONMENT
NIE derives its revenue principally through
charges for use of the distribution system
and Public Service Obligation (PSO) charges
levied on electricity suppliers and charges for
transmission services (mainly for use of the
transmission system) levied on the electricity
transmission system operator in Northern
Ireland (SONI).
NIE is regulated by the Utility Regulator and
the Department of Enterprise, Trade and
Investment (DETI). NIE is subject to a price
control, defined in a formula set out in its
licence. The principles of price regulation in
the licence conditions reflect the general duties
of the Utility Regulator and DETI under the
relevant legislation. These include ensuring that
NIE can finance its authorised activities.
NIE’s fifth five-year price control (RP5) which
was due to commence on 1 April 2012 has
been delayed.
€118M
THE CAPITAL INVESTMENT MADE
ON THENETWORKS SYSTEMIN
NORTHERN IRELANDIN 2012
In April 2012, the Utility Regulator published
its draft determination for RP5 for consultation.
The Utility Regulator’s final determination was
published in October 2012 and NIE responded
on 20 November 2012, advising the Utility
Regulator that regrettably it was unable to
accept the Utility Regulator’s proposed terms
for the RP5 price control.
NIE has not taken this decision lightly. The
allowances proposed by the Utility Regulator
fall substantially short of the amounts required
110KV Single CCT
110KV Double CCT
275KV Single CCT
275KV Double CCT
Moyle HV DC Link
Powerstation
275KV Substation
110KV Substation
to enable NIE to meet its statutory and licence
obligations and to carry out the necessary
programme of work for RP5 to deliver the level
of service that NIE’s customers expect.
Since both NIE and the Utility Regulator
consider that the present price control requires
modification, NIE now expects the Utility
Regulator to refer the matter to the Competition
Commission.
INVESTMENT AND GROWTH
Since its privatisation in 1993, NIE has made
significant investment in network infrastructure.
During the period NIE has continued to invest
in its infrastructure to replace worn network
assets, to accommodate increasing load
and new consumer connections and to meet
requirements in respect of the connection of
renewable generation. In addition, a new billing
and market IT system, to facilitate full retail
competition in the Northern Ireland electricity
market, was successfully implemented in May
2012, in conjunction with ESB Networks.
In its business plan submission to the Utility
Regulator for RP5, NIE proposed that the
Table of Contents for the Digital Edition of ESB Annual Report 2012
ESB Annual Report 2012
Contents
Business Overview
Chairman’s Statement
Chief Executive Review
Our Strategy and Business Model
Operating and Financial Review
Operating Environment
Finance Review
Business Unit Sections: ESB Generation and Wholesale Markets
ESB Networks
NIE
Electric Ireland
Corporate Social Responsibility
Introduction from Executive Director, People and Sustainability
Sustainability Charter
Energy Usage 2012
ESB Innovation
Equality and Diversity
Our People
Our Community
Corporate Governance
Chairman’s Corporate Governance Statement
The Board
Executive Team
Board Members’ Report
Risk Management Report
Statement of Board Members’ Responsibilities
Independant auditor’s report to the stockholders of Electricity Supply Board (ESB)
Statement of Accounting Policies
Financial statements
Prompt Payments Act
ESB Annual Report 2012
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