NI Water announce 2023/24 charges

28 March 2023 13:45

NI Water has announced that from 1^st April 2023, non-domestic water and sewerage charges will rise by 13.4% on average.   

NI Water Director of Finance, Regulation & Commercial, Ronan Larkin, commented:  

“We are aware how challenging the environment can be for local businesses within the economy right now.  In previous years, we have been able to limit the non-domestic price increase to strike a balance between generating sufficient income and minimising the impact on business customers.  Whilst NI Water has again absorbed as much cost as possible, the company is facing significant financial pressures from rising energy prices and other cost increases.

“We have worked hard to ensure most of our customers will see their bills rise by less than inflation.[1] Specific bill changes operate according to a formula agreed with the Northern Ireland Utility Regulator. 

“It is well documented that NI Water needs to receive full funding to ensure we continue to deliver a water and sewerage service that represents good value for money.  The revenue from bills will help support necessary investment in our infrastructure, benefitting the local economy and environment.  However, even with full funding and bill increases, historic underinvestment will take in the region of 12 to 18 years to remedy.

“Measured customer bills will rise by 12.7%, while unmeasured and trade effluent bills will rise by 13.7% and 15.5% respectively.  This compares favourably with other utilities across Gas and Electricity sectors.

 “NI Water is mindful of the impact of price rises, it is therefore important that customers who may need extra help with their bill communicate with us as soon as possible.  Our billing team will be on hand to offer guidance, including payment breaks or longer repayment plans.

“We have enhanced our online self-service portal with a smarter navigation to help provide a better experience when paying a bill, managing account(s), or viewing water consumption details.”

Leaflets will be mailed to non-domestic customers to notify them of the forthcoming pricing changes and how they will be applied.  

Customers can access further information about our charges on NI Water’s website at www.niwater.com. Anyone with questions about their bill or our charges can phone our Billing Enquiries Team on 03458 770030.

• Click here to access the 2023/24 Scheme of Charges Document 
• Click here to access the 2023/24 Summary of Charges Document

ENDS

For media enquiries, please contact NI Water Press Office press.office@niwater.com

[1] The RPI measure of inflation used is based on November 2022 RPI which stood at 14.0%, however energy prices and other opex costs remain higher than inflation.

Notes to editors

• The price limits used by NI Water to set regulated prices exclude inflation. The Utility Regulator, responsible for determining price limits, uses Retail Price Index (RPI) as its main measure of inflation.

• The RPI measure of inflation used is based on November 2022 RPI which stood at 14.0%, however energy prices and other opex costs remain higher than inflation.

• NI Water is required to annually review the charges levied for water and sewerage services and agree them with the Utility Regulator in order that customers pay the fairest rate for the water and sewerage services they receive.

• The need to raise tariffs reflects the impact rising inflation has had on the cost of providing water and sewerage services to customers.

• Measured customers are charged for water and sewerage based on a meter reading. Unmeasured customers are charged based on the Net Annual Value (NAV) of their premises.

• While the value of a customer’s bill will vary depending on the amount of water used or the value (NAV), the following are typical examples of how customers may be impacted by these increases:

Typical measured customer examples

• ­    A shop or small office unit, connected to sewer, using 285M³ of water, will pay £478, a rise of £54 per year.
• ­    A medium size factory, connected to sewer, using 1,300M³ of water, will pay £4,384, a rise of £495 per year.
• ­    Farmer using 400M³ of water, with septic tank, will pay £345, a rise of £37.

Typical unmeasured customer examples

• ­ Small to medium shop or office unit, with a NAV of £8,000, connected to sewer, will pay £366, a rise of £44.

• Due to the continuing deferment of domestic charges, eligible measured water and sewerage customers will continue to avail of a domestic allowance which will reduce their water and sewerage bill. As it is not possible to offer a volumetric domestic allowance to unmeasured customers, unmeasured water and sewerage charges will continue to be billed at one half of the full charge.

• Non-domestic customers include: small, medium and large businesses, farms, industrial users, voluntary organisations and charities, public bodies, churches and non-household use properties.

• Over the past fifteen years, we have steadily improved the efficiency with which we operate while at the same time improving the quality of drinking water, levels of environmental compliance and the services we provide to our customers.  In 2007, NI Water’s operating costs were 49% less efficient than the leading UK utility comparator.  A benchmarking analysis carried out by the Utility Regulator and reported in the PC21 Final Determination, confirms that NI Water has closed the operating cost efficiency gap with leading water sector companies in England and Wales to just 5.7%.