NI Water notes the Ministers statement on the PwC report and will study its findings in detail, when it is published. The report must be viewed in the context of a 27% funding gap compared to the level independently assessed as essential by the Utility Regulator as necessary to meet the Department for Infrastructure’s Social and Environmental Guidance.
NI Water recognises the financial pressures facing DfI. However, if the proposed budget cannot be met, the Department and Utility Regulator must agree on what is realistically deliverable.
Persistent underinvestment in water and sewerage services is having wide reaching implications for Northern Ireland. Both the Northern Ireland Audit Office and the Fiscal Council have recognised that current funding arrangements are not sustainable. The underfunding, which has continued since the creation of NI Water in 2007, means that key objectives and priorities that underpin the Programme for Government cannot be met under these arrangements.
In March 2024, NIAO highlighted how historic underinvestment has led to serious capacity constraints across Northern Ireland’s wastewater network. It also warned that the short-term funding model undermines long-term planning—underscoring the urgent need for a comprehensive, expert-led review of funding and governance, and a coordinated, cross-departmental approach to infrastructure delivery.
NI Water would welcome an Executive-led, fully funded, and realistic cross-departmental transition plan to simultaneously meet the objectives on housing, economic development, and the environment as set out in the Programme for Government. We remain ready to work with the Department, in conjunction with the Utility Regulator, and all relevant stakeholders to help shape and deliver a sustainable, joined-up solution. Prioritising one objective over others risks systemic failure, with profound consequences for the Programme for Government and the tough choices required to determine which outcomes in the current Price Control Determination should take precedence.
NI Water’s core mission remains unchanged: to deliver safe, reliable water and wastewater services that support existing homes and businesses, enable new housing and economic development, and protect the environment. These remain the three priorities that underpin the Programme for Government.
ENDS
