Why set up independent regulation of water charges and then hint that you will determine the figures yourself?
We have a regulator whose job it is to decide what businesses and households pay for water and sewerage services and thus what revenue NI Water has to work with.
No sooner has the utilities regulator announced his final proposals for the next three years, than the Regional Development Minister hints that he will interfere in the process himself.
No doubt Conor Murphy's intervention is well intended. He says the Executive will have to take into account economic conditions including job prospects before deciding what cash NI water will be allowed.
He also says we have to be realistic about the levels of efficiencies the water company can achieve.
That seems to be a broad nod and wink that he will not impose the ninety million pound efficiency cuts demanded by the regulator.
But then what is the point of the regulator going to all that trouble to work out his numbers only to have them cast aside?
Over-ruling the regulator undermines independent regulation.
Views: 2296
© UTV News