Consultation on SONI price control 2007-2010

Ofreg consultation (21 pages, Microsoft Word) on proposals for a price control for SONI (electricity system operator for Northern Ireland) from 1 November 2007 (retrospectively) until 31 March 2010.

The document proposes a rate of return of less than 5 per cent real (relative to RPI) pre-tax on the regulatory asset value of about £11 million. This is based on figures from the Competition Commission report on London airports, a beta of 0.58 from “Deloitte report on SONI August 2007” and a small company premium of 0.26 per cent which had been proposed by SONI (on the assumption that the starting point was the rate of return of 6.9 per cent allowed for NIE's transmission business).

Responses by Friday 11 January 2008.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofreg, Price controls.

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