Northern Ireland Water has admitted it could cost up to £3m to alter a contract with a company it hired to run customer billing and other services.
Steria has another four years of a seven-year contract left to run.
NI Water is to take over management of specialist sub-contractors but Steria will continue to carry out business services including IT support.
William Duddy of Northern Ireland Water said that altering the contract would "ultimately save the company money".
"In the event of termination like this, we could pay up to a maximum of £3m," he said.
"We are confident we can get at savings here and it will be value for money for taxpayers."
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