Northern Ireland Water

Parent Company:         Northern Ireland Government

Regulated utility:           Northern Ireland Water Ltd

Ownership:                     Public sector

Northern Ireland Water was established in April 2007 as a Government Owned Company (GoCo). It is a statutory trading body wholly owned by the Northern Ireland Government to provide water and sewerage services in Northern Ireland. It supplies water to around 1.7 million people.

In establishing Northern Ireland Water it has been modeled on the successful approach adopted in England. The most important difference is that water is still paid for in Northern Ireland via general taxation. The legislation establishing the company suggested that direct billing of customers would be established shortly after the company's formation. However this is a major political issue and as yet there is no consensus in Northern Ireland Government as to when charging will actually be introduced. So far its been deferred to 2010 and further delay is almost certain.

Northern Ireland Water as set itself the challenging aim of matching or exceeding the performance levels of similar British water companies by 2014.

The regulatory set-up in Northern Ireland has also been modeled on England. The Utility Regulator's Water Directorate was established in April 2007. The aim of the Utility Regulator is to regulate the water and sewerage industry Northern Ireland in a way that encourages and incentives the water company (NI Water) to achieve the highest possible service for customers in terms of quality and value. Its duties are basically the same as Ofwat in England and Wales and the Water Industry Commission for Scotland (WICS). The price control process in Northern Ireland is closely aligned to the Price Review processes in England and Wales.

Northern Ireland has suffered from years of under investment and consequently performance in areas such as sewer flooding and water mains leakage are well behind those in mainland Britain. In the last three year Strategic Business Plan (ended in March 2010) £778 million was invested. Some of the work is being delivered by PFI/DBFO type contracts. For example Project Alpha to upgrade about 50% of Northern Ireland's water production is being implemented by Dalriada Water Ltd under a 25 year operating and maintenance contract.

Recently Northern Ireland Water has suffered further controversy with the dismal of four board members following irregularities in the awarding of contracts. In the next regulatory period 2010-2013 Northern Ireland Water has to deliver over £560M of capital investment, reduce operating costs and close the 49% operational efficiency gap between NI Water and the English and Welsh water companies.