'Most expensive' quango pays £50k per employee
THE Utility Regulator has confirmed it pays an average £50,000 salary, prompting claims that it could be the most expensive quango per employee in Northern Ireland.
Leading economist John Simpson told the News Letter that the Department of Enterprise-funded body – which regulates electricity, gas and water – “could be the most expensive quango per head in Northern Ireland”.
Mr Simpson said that his research has found that when salaries, pensions and national insurance are included, the regulator pays even more than 50k – he concludes that the average total is 55,000 to 60 employees in wages.
“Last year [the total] was 50,000 so this year there is a 10 per cent increase,” Mr Simpson said.
The Utility Regulator responded that average gross pay for employees jumped from 48,000 to 50,000 in the past year, slightly lower figures than claimed by Mr Simpson.
However, she said its figures did not include pension contributions from the regulator, only those payable by the employees.
Mr Simpson observed that the chief executive lain Osbourne’s salary last year was 130,000-140,000.
“The regulator is now a very highly paid organisation and I would hope someone is reviewing it to bring it into line with current economic conditions,” he added.
The Utility Regulator’s role in helping to oversee NI Water has been in the spotlight during the recent controversy at that utility.
Stormont Enterprise committee member Leslie Cree MLA said Mr Simpson’s assessments had “provoked his curiosity” and he said he would look into it in the interests of public value for money.
“Our committee would normally only see a single annual figure for the amount given to quangos by our department,” he added.
A spokeswoman for the regulator said that the body’s pay rates have been benchmarked against relevant organisations, including other regulators.
“We require staff with specialist skills and expertise, including economists, engineers and accountants, in order to effectively carry out our functions,” she said.
Such staff are needed to ensure that utility bills are kept as low as possible, and to promote efficiency and competition among companies in the public interest, she argued.
“To put our costs in context, our regulation has generated over 210 million of savings for consumers since 2006. The cost of economic regulation amounts to, on average, less than 11 per cent of the savings that we have generated for Northern Ireland consumers.”
The regulator recognises its responsibility to control costs and its budget is nine per cent lower than the previous year’s, she said.
The increase in average gross pay since last year, she said, was not a pay rise but was caused by the recruitment of 12 new highly paid staff.
A spokesman for the Enterprise department said the regulator’s funds are voted by the assembly, with the Department of Finance having a role. “However licence fees from regulated energy companies, ultimately paid by consumers, also contribute to the regulator’s costs.
“The nature of the activity of the regulator means that it requires a high number of professional people, such as economists, which results in a higher average salary.”
Regulator backs use of smart electricity meters, see business page 15
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