The Northern Ireland Utility Regulator has set out the terms of reference for its investigation into Northern Ireland Water’s performance during the recent water supply failures in Northern Ireland.

Announcing the investigation, Shane Lynch, the Utility Regulator’s Chief Executive said:

“Following the recent water supply failures affecting consumers across Northern Ireland, we decided to exercise our statutory powers by announcing an investigation into NI Water’s performance.

“We intend to get to the heart of what went wrong during the recent crisis, and will examine how NI Water planned and reacted to these events.”

Mr Lynch continued:

“As a key stakeholder, we also consulted the NI Executive on the terms of reference for the investigation. Following consideration of the Executive’s comments, the overall review will also now consider broader governance issues, including the role and responsibilities of the Minister for Regional Development in relation to this incident.

“Recognising that this area of inquiry is outside the statutory remit of the Regulator, the First Minister (FM) and Deputy First Minister (DFM) will nominate two appointees to specifically consider the broader governance issues. The two appointees will also consider the Regulator’s recommendations.”

Key aspects of the investigation

The investigation, which started immediately, will review the following aspects:

• contingency planning and implementation;
• internal and external communication;
• cause and extent of supply problems;
• governance, leadership and management.

 The final investigation report, which will be submitted to the Executive by the end of February, will be in two parts. The first part, which will deal with the performance of NI Water – in the context of the Regulator’s statutory powers – will be produced by the Regulator and will be approved by its board. The second part will address the broader governance issues and will be produced by the two FM and DFM appointees.

The Utility Regulator is now in the process of establishing an experienced and expert operational team and an oversight committee. The oversight committee will steer the investigation and review the analysis and findings of the operational team. The Oversight Committee will include representation from the Utility Regulator’s Board together with independent experienced experts. The members of the committee will be announced as soon as possible.

The Utility Regulator is the independent non-ministerial government department responsible for regulating the electricity, gas, water and sewerage industries in Northern Ireland.

The regulator said that its principal role with regard to the Northern Ireland water industry is:

 “to provide independent expert scrutiny and regulate NI Water in a way that provides incentives and encourages the company to achieve the highest possible service for consumers in terms of both quality and cost. In addition, we are responsible for protecting the interests of water and sewerage consumers by promoting a robust and efficient industry.”

In the light of the systemic failure which appears to have taken place in Northern Ireland, it will be interesting to see whether the investigation by the Ministerial appointees will also extend to the role of the Regulator itself– which only recently signed off on NI Water’s business and spending plans.