Renewable energy companies challenge regulator's decision regarding compensation

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Renewable Energy Companies Challenge Regulator's Decision Regarding Compensation
Two actions have been taken by Energia Group Holdings, along with several subsidiaries, and GR Wind Farms and its subsidiaries. Photo: PA Images
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High Court reporters

Two groups of renewable energy companies have launched High Court challenges against a decision of the Commission for Regulation of Utilities not to compensate them if they are told to temporarily shut down due to issues with the electricity grid.

The two actions have been taken by Energia Group Holdings, along with several subsidiaries, and GR Wind Farms, and its subsidiaries, over a decision taken last March by the commission, which is the State's regulator for energy and water.

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The commission decided not to implement an EU regulation where power-generating companies receive compensation when they are told to switch off their wind farms due to grid limitations.

The decision at the core of the proceedings was made through the commission's Single Energy Market Committee.

It was also claimed before the High Court that the commission is not entitled to make the decision and must implement the EU Regulation regarding compensation for energy-generating companies.

It is also alleged that in arriving at its decision, the respondent took into account irrelevant considerations and failed to take into account relevant considerations.

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It is further claimed that the decision is irrational and that the commission failed to give adequate reasons for what the applicants say amounts to a breach of fair procedures.

In judicial review proceedings, the two groups of companies seek various orders and declarations including orders quashing the commission's decision, and that the regulator give effect to the EU regulation regarding compensation.

They also seek declarations that compensation must be paid in accordance with the EU Regulation by the transmission system operator, which in this case is Eirgrid, as licenced by the commission.

They further seek a declaration that the decision is invalid and breaches the Constitution and EU law.

Eirgrid Plc is a notice party to the actions.

Permission to bring the challenges was granted on an ex-parte basis by Mr Justice Anthony Barr.

The case comes back before the court in October.

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