Energy trading company brings High Court challenge to operation of electricity market

Electroroute Energy Trading claims recent change will adversely impact its activities

Eirgrid operates and develops the electricity grid
Eirgrid operates and develops the electricity grid

An energy trading and services company has brought a High Court challenge over a change to the way the electricity market is operated on the island of Ireland.

Electroroute Energy Trading Ltd, of Letterkenny, Co Donegal, claims the change will adversely impact on its activities in the wholesale electricity market.

Electroroute is one of a number of companies that sells electricity to Eirgrid, which operates and develops the electricity grid. The market is regulated by the Commission for Regulation of Utilities in the Republic and the Utility Regulator in Northern Ireland in what is the Single Electricity Market (SEM) for the whole of the island.

The regulatory authorities have a statutory trading and settlement code which can be modified after it is examined by an SEM committee. Electroroute says that a modification proposal submitted was submitted to the SEM committee which was rejected by the committee in September last year. However the regulatory authorities, in October last year, approved the modification, Electroroute says.

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As a result, Electroroute brought High Court proceedings seeking a number of declarations that the modification was invalid on grounds including that it was inconsistent with an EU regulation on the internal market for electricity. It also sought an injunction seeking to prevent any steps to implement the modification pending determination of the proceedings.

Electroroute claims the modification will result in price increases in the wholesale electricity market. It says it will impact over 500 participants in the market, including Electroroute.

On Monday, the Commission for Regulation of Utilities applied to have the dispute dealt with in the fast track Commercial Court. The application was made on consent from Electroroute and Eirgrid, which is a notice party.

The Commission said a swift resolution of the dispute was required because a significant change to the trading and settlement code is now effectively suspended because of the proceedings.

It also affects the ongoing cross-border collaborative arrangements of the Single Electricity Market, it says. Mr Justice David Barniville agreed to admit the case to the Commercial Court.

He gave a date next week for an application from the Commission to lift the injunction but was told agreement may be reached in the meantime between the parties over this.

Mary Carolan

Mary Carolan

Mary Carolan is the Legal Affairs Correspondent of the Irish Times