Water Regulation through to 2021 and beyond

Transcription

1 Water Regulatin thrugh t 2021 and beynd Sheenagh Rney Directr f Water Regulatin Cmmissin fr Regulatin f Utilities (CRU) WWT Water Ireland Cnference 25 April 2018

2 Presentatin Overview The CRU Irish Water s Ecnmic Regulatr Our Rle stry s far Water Regulatin Onging Pririties Irish Water custmer engagement Irish Water Revenue Mnitring Irish Water s perfrmance Water Regulatin Challenges and Visin 1

3 Intrductin CRU Ireland s Independent Energy and Water regulatr Brad ecnmic, safety and custmer prtectin functins in energy since Appinted as ecnmic regulatr f the Irish public water and wastewater sectr in Regulating Water, Energy and Energy Safety in the public interest CRU Missin Statement.

4 Public Water & Wastewater Services CRU s Rle CRU regulates Irish Water Revenue Tariffs Cnnectin Plicy Custmer Service Outside CRU s respnsibilities: Envirnmental regulatin Water quality Private Grup Water Schemes Private water supplies 3

5 Regulating Irish Water 2013 t 2018 Establish & Mnitr Irish Water s Custmer Service Standards Investigate Custmer Disputes against Irish Water Determine Irish Water s Revenue Requirement & Efficiency Targets Mnitr Irish Water s Expenditure with regard t utcmes fr Custmers Review and Apprve Irish Water s Charges Review and Apprve Irish Water s Plicies Request Regular Data Reprts frm Irish Water Stakehlder Engagement Cnsultatins and Publicatins

6 Custmers Cnsumer Prtectin Develped the Custmer Handbk - Requirements relate t: Custmer Charter Cmmunicatins Metering Billing Vulnerable Custmers Netwrk Operatins Cmplaint Handling Terms & Cnditins Established a Cmplaints Service fr custmers f Irish Water

7 Custmers Future Pririties Custmer Handbk: Targeting 100% Cmpliance Updated Nn-Dmestic and Dmestic Handbks Publicatin: Cntinue t publish Custmer Infrmatin Ntes Prmte: CRU Cmplaints Service via ur Custmer Care Team Establish: Irish Water s Cnnectin Charging Plicy Irish Water s Nn-Dmestic Tariff Framewrk

8 Cnsultatins Cnnectin Charging Cnnectin Charges 900 Business as Usual (BAU) charging arrangements remain New harmnised natinal cnnectin charging plicy fr bth dmestic and nn-dmestic custmers Charges are simple and mre transparent fr custmers Cnsultatin published January 2018 Draft decisin expected June 2018 Implementatin 2018 Key issues Partially deep cnnectin charges (cnnectin csts recvered frm cnnecting custmers nly) Least cst design slutin (custmers pay nly apprpriate csts) Full end t end service (incl. rad pening/la bnds etc.) Pipe size used t determine custmer categries (dmestic/small nn-dmestic etc.) Transitinal arrangements (perid f time fr custmers t chse existing r new plicy ffer)

9 Cnsultatins Nn-Dmestic Tariffs Nn-Dmestic Tariffs BAU charging currently in place, 44 distinct billing authrities with 500 different tariffs Different tariff levels, categries, methdlgies, applicatins, billing arrangements, billing cycles Harmnised tariffs will benefit custmers in terms f transparency, simplicity and equity. Cnsultatin mid 2018 The CRU will cnsult n Irish Water s prpsals fr nn-dmestic tariffs. This will include prpsals fr transitining custmers t the new tariff regime. Implementatin

10 Revenue Cntrl Prcess CRU Apprves Irish Water s Revenue Allwance Plicy Statement Funding Plan Revenue Cntrl Minister publishes Water Services Plicy Statement. Irish Water submits Strategic Funding Plan t the Minister. Minister may apprve r seek revisin. Irish Water makes its Revenue Cntrl submissin t the CRU. CRU cnducts a detailed assessment f Irish Water s submissins. CRU benchmarks Irish Water s csts against cmparable utilities. CRU reviews Irish Water s Investment Plan including apprach t develpment and csting f verall plan. CRU establishes efficiency targets. Public Cnsultatin prir t Revenue Decisin. Irish Water submits its Water Charges Plan t the CRU fr apprval.

11 Revenue Cntrl Prcess Benchmarking Operatinal Csts CRU benchmarks Irish Water s csts against cmparable utilities in ther jurisdictins. Large gap between Irish Water s current csts and perfrmance and thse f efficient utilities in Nrthern Ireland, Sctland, England and Wales. Will take a number f years befre Irish Water can drive sufficient efficiencies within its perating csts t be n a cmparable level with water utilities the UK. Ireland is n its way: CRU s efficiency challenges will see Irish Water reduce its base cntrllable pex by 20% in the perid 2015 t 2018 Imprtant t cntinue t place challenging but achievable bjectives n Irish Water. Water utilities in bth Nrthern Ireland and Sctland have been able t drive annual reductins in their perating csts fr a number f years fllwing the intrductin f regulatin while at the same time facing grwth and cmpliance issues. CRU expects Irish Water t reduce its csts while imprving its services

12 Revenue Cntrl Prcess Tw Revenue Cntrls Cmpleted IRC1 Octber : Overall efficiency targets were bradly met 6 new and 22 upgraded water treatment plants 29 new and 36 upgraded wastewater treatment plants 850km f new r rehabilitated watermains 105 millin litres f water being saved every day as a result f the First Fix Free Scheme IRC : Capex 132m efficiency challenge Opex 5% per annum, cumulative efficiency challenge IRC2 being extended t include 2019 t align with requirements fr new funding arrangements Perid Irish Water s Request CRU Decisin Saving % Saving Oct ,152m 1,968m 184m 8.5% ,008m 1,843m 165m 8.2% 11

13 Revenue Cntrl 3 Irish Water s Third Revenue Cntrl 2020 t 2024 Currently preparing and determining the apprach. Prcess t begin in September RC3 will cver the years 2020 t Revenue cntrl perid increasing t 5 years. Facilitates lnger term planning and efficient delivery. The CRU will cntinue t set challenging targets fr Irish Water. New mdel fr Irish Water. Dmestic use paid fr thrugh exchequer funding up t a threshld. Charge fr excessive use. Cntinued cnnectin charges and nn-dmestic tariffs.

14 Hw the CRU Mnitrs Irish Water s Perfrmance Revenue Cntrl Frward Lking and Lkback Review Capital Investment and Operatinal Expenditure frm previus revenue cntrl perid. Has Irish Water achieved the peratinal, capital cst reductins and efficiency targets set by the CRÙ? Has Irish Water delivered the expected utcmes fr custmers frm the Investment Plan? Has Irish Water cntinued t perate the water and wastewater systems in a way that ensures efficient utcmes? 13

15 Hw the CRU Mnitrs Irish Water s Perfrmance Cmpliance Under the Custmer Handbk Cmplaints Vlume & Type Supply Interruptins Planned & Unplanned Water unfit fr human cnsumptin Number f Bil Water Ntices Number f Drinking Water Restrictins

16 Hw the CRU Mnitrs Irish Water s Perfrmance Irish Water Perfrmance Assessment New framewrk. Decisin published Nvember 2016, tw reprts published (Aug 2017 & Feb 2018). Will allw the CRU t mnitr and track Irish Water s perfrmance ver time. Similar framewrk established fr Scttish Water & Nrthern Ireland Water. Irish Water is nt yet reprting against all metrics.

17 Hw the CRU Mnitrs Irish Water s Perfrmance Perfrmance Assessment Metrics Custmer Service Envirnmental Perfrmance Water Supply Quality f Service Security f Water Supply Sewerage Service Respnse t billing cntacts Respnse t cmplaints Billing f metered custmers Ease f telephne cntact: the call abandnment rate Ease f telephne cntact: a custmer call-back survey Ease f telephne cntact: speed f telephne respnse Ease f telephne cntact: first cntact referral Pllutin incidents relating t wastewater Sludge dispsal Wastewater treatment wrks meeting requirements; Prperties subject t unplanned interruptins Water quality Water supplies n bil water ntices and/r water restrictins Leakage Security f supply Abslute perfrmance Security f supply Perfrmance against target Sewer incidents (verlad) Sewer incidents (ther causes) Sewer incidents (at risk) 16

18 Hw the CRU Mnitrs Irish Water s Perfrmance Capital Investment Mnitring Mnitring cmmenced in Tw reprts cvering the perids 2014 t 2016 and Jan t June Infrmatin Paper n the enduring framewrk will be published in Prmte penness and transparency. Mnitr Irish Water s delivery f the utcmes in its Investment Plan within the agreed timelines and budgets. Mnitr the prgressin f Irish Water s Majr Prjects.

19 CRU Stakehlder Engagement CRU s cmmitment t Openness, Transparency and Public Inclusiveness Cmmunicatin Streams: Custmers Public Cnsultatins & Infrmatin Papers Bilateral engagement with representative bdies Lcal Authrities Irish Water Water Advisry Bard Department grups Cnsumer Cnsultative Grups Nn-Dmestic Water User Grup EPA CRU Department (DHPLG) CRU Custmer Care Team Publicatin f Infrmatin Ntes Natinal Water Frum Envirnmental Prtectin Agency Expert Cmmissin Jint Oireachtas Cmmittees Natinal Water Frum

20 Water Regulatin Challenges and Visin 19

21 Regulatry Issues Key Challenges Lwer Csts Funding Mdel Cmpeting Investment Pririties Better Outcmes fr Custmers Incentivising Water Cnservatin Better Data

22 Water Regulatin The Visin CRU Strategic Gal fr Water Regulatin.fcusing n ensuring the delivery f clean water and efficient treatment f wastewater, supprted by best practice regulatin benchmarked against internatinal standards Cst Reflectivity Efficiency Equity & Nndiscriminatin Stability Simplicity Cst Recvery Transparency

23 Thank Yu 22