|Client||Northern Ireland Authority for Utility Regulation (NIAUR)|
|Service(s)||Policy & Economics, Regulation & Competition|
CEPA provided economic advice to the Northern Ireland Utility Regulator on the application of a Regional Price Adjustment (RPA) during its price control review PR15 of Northern Ireland Water (NIW). CEPA’s work involved:• developing a structural cost model, including:
- a high-level breakdown of cost areas for a typical water industry capital project;
- estimating regional price differentials using price indices and weighting these differentials to produce an RPA; and
- developing a methodology for applying the RPA’s.