North water company facing massive losses

Errors calculating bills combined with the economic downturn has left Northern Ireland Water facing an income shortfall of up to £7m (€8.93m) this year, the company revealed today.

The forecast accounts for almost 10% of the supplier’s estimated revenue.

The revelation follows last week’s admission by the company that it had sent out incorrect bills to around 8,500 non-domestic customers, resulting in a £750,000 (€957,000) deficit.

Acting chief executive Chris Mellor said most of the predicted shortfall was due to uncontrollable factors and not as a result of the billing miscalculation.

Mr Mellor said the unseasonably wet summer and the general economic depression meant businesses were not using as much water as the company had predicated.

Facing questions at Stormont’s Regional Development committee, Mr Mellor said the scale of the deficit was not unmanageable and would not impact on domestic customers when they receive their first bills next year.

“While it is unusual it is not unprecedented,” he said.

Of the customers who were sent incorrect bills, 5,350 were overcharged to the tune of £1.2m (€1.53m).

With the remaining 2,850 being undercharged by around £500,000 (€638,000), NIW has been left facing a £750,000 (€957,000) hole in its pocket as a result of the miscalculation.

Mr Mellor said the error was inexcusable and should have been detected sooner.