As part of its decision to appoint a Safety Supervisory Body, the CER stipulated that a Safety Supervisory Body shall be required to self-finance any establishment costs, whilst the treatment of operating costs and revenues incurred by the Safety Supervisory Body would be assessed by the CER. In July 2008, the CER published a decision paper (CER/08/108), which provided a framework for the economic regulation of the Safety Supervisory Bodies.
The economic regulation framework consists of a
- Cost Approval Process;
- Charges Approval Process; &
- Review & Adjustment Process.
Cost Approval Process
Both RECI and ECSSAI submitted tender documents to the CER during the designation process for the appointment of a Safety Supervisory Body(s), which were subsequently approved by the CER, thus providing a basis for the Safety Supervisory Bodies to recover the costs through fees and charges. These Approved Costs are applicable for the remainder of the term of appointment, unless revised by the CER.
Charges Approval Process
The Safety Supervisory Bodies are regulated on the basis that they should be able to recover (through charges) an amount sufficient to cover the efficient costs of undertaking the Core Activities of a Safety Supervisory Body. Consequently, both RECI and ECSSA submitted a Charging Methodology during the Designation Process for CER approval. Essentially, the Charging Methodology specifies the manner in which Approved Costs are converted into charges, whilst detailing the proposed charges for the period of the Designation Term. Any subsequent change in the Approved Charges or the Charging Methodology can only be implemented with the prior consent of the CER.
Review Process
The Safety Supervisory Bodies are required to provide independent audited accounts on an annual basis to the CER, which shall be submitted within 60 days after the end of each year. The annual report shall describe the activities and operations of the SSB, and any further details on its financial performance for the preceding year. The Safety Supervisory Bodies Annual Reports are available to download from the Safety Supervisory Bodies website.
To view the CER's decision regarding Economic Aspects of Regulating Electrical Safety, please click on the link below:
For further information, please contact the Electrical Safety Team at the CER.