1 Non-Domestic Charges 2009/10 Presentation to Chairman Fred Cobain MLA and Deputy Chairperson Jim Wells MLA 22 nd April 2009

2 Purpose of Presentation To explain Non-Domestic Charges effective from 1 st April 2009, and; To underline our commitment to communicating with the RDC

3 Context Investing £1m per day on improving infrastructure CCNI & OFWAT Customer Surveys Focus on Data Management Stakeholder communications – -Worked with NIAUR from Oct 08 to agree the scheme of charges -Worked closely with CCNI throughout the process, from initial tariff drafts to consultation on the customer communications material -Advised key business groups on tariff changes and proactively offered a briefing to their members

4 Revenue Requirement 2009/10 Represents an increase of 7% in revenues from 2008/09 Additional efficiencies £10.5m, £7m in 2009/10 Without additional efficiencies, revenue requirement would have been 3% higher 2009/10 £'m Strategic Business Plan Revenue requirement385.4 less adjustments Additional efficiencies (cum. 26.5% by 2009/10) (10.5) Reduction in capital base maintenance (c/fwd from 2008/09) (3.8) Removal of domestic Bad Debt (8.7) Revised revenue requirement 2009/

5 Non-Domestic Charges 09/10 – Overview Measured customers - Water charges annual increase - Retain Water Domestic Allowance (200m3) - Sewerage charges (50% in 08/09) increased to 100% - New Sewerage Domestic Allowance (190m3) - Standing charge based on supply pipe size Unmeasured customers - Water and sewerage charges annual increases (linked to NAV) - Charges capped at £405 each - Continue to be billed at 50% of full charge Trade effluent - Annual increase - Standard strengths are reduced (increasing the Mogden charge)

6 Non-Domestic Charges 09/10 – Water WATER Description2008/092009/10 UNMEASURED Standing Charge (£) Variable Charge (£/£1,000 Net Annual Value) Cap (Standing Charge + Variable Charge) (£) MEASURED Standing Charge based on Pipe Size (£) Up to 15mm Over 15mm up to 20mm Over 20mm up to 25mm Over 25mm up to 40mm Over 40mm up to 50mm Over 50mm up to 75mm Over 75mm up to 100mm 1,120.01,140 Over 100mm 1,600.01,620 Volumetric Charge (£/m 3 )

7 Non-Domestic Charges 09/10 – Sewerage SEWERAGE Description 2008/092009/10 UNMEASURED Standing Charge (£) Variable Charge (£/£1,000 Net Annual Value) Cap (Standing Charge + Variable Charge) (£) MEASURED Standing Charge based on Pipe Size (£) Up to 15mm Over 15mm up to 20mm Over 20mm up to 25mm Over 25mm up to 40mm Over 40mm up to 50mm Over 50mm up to 75mm Over 75mm up to 100mm560.01,140 Over 100mm ,620 Volumetric Charge (£/m 3 ) TRADE EFFLUENT Reception R (p/m 3 ) Volumetric V (p/m 3 ) Biological B (p/m 3 ) Sludge S (p/m 3 ) TOTAL

8 Non-Domestic Charges 09/10 – Impact Charge typeScenario 08/09 charge (£) 09/10 charge (£) Increase £Comment Unmeasured Unmeasured customer in property with NAV of £7,000. Connected to water and sewer mains £182£213£3165% of unmeasured customers are in properties valued below £7,000 and therefore would see their bill increase by less than £30 from last year. Unmeasured customer in property with NAV of £50k. Connected to water and sewer mains £790£810£20In addition 5% of all unmeasured customers have their charge capped at £810 Measured Farmer, using 800m³ of water with a domestic allowance. Not connected to sewer £639£684£45 Medium factory, using 3,000m³ water and is connected to the sewer. Has a domestic allowance £5,066£7,366£2,300Water bill increases by £200. Big increase in sewerage as a result of the removal of the 50% phasing in 2008/09.This is offset somewhat by the new sewerage domestic allowance Trade Effluent Large factory discharging 15,000m³ of standard strength effluent £9,593£10,980£1,387Larger increase in trade effluent as NIAUR requires NIW to close the differential between Trade Effluent

9 Next Steps Non-domestic charges communication (w/c 27 th April): - Letters to all non-domestic customers detailing the changes to tariffs - Press Release to all daily and local papers - Public Notice detailing tariffs in daily business press - Offer given to personally brief/present to business groups

10 Thank you