Renewable energy companies challenge refusal to compensate

Two groups of companies involved in renewable energy generation have launched High Court challenges against a decision of the Commission for Regulation of Utilities (CRU) 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 State’s regulator for energy and water not to implement an EU regulation whereby 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.

The High Court heard that the commission was not entitled to make the decision and must implement the EU regulation.

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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.

It is further claimed that the decision was irrational and that the commission failed to give adequate reasons for what the applicants said amounted 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 a variety of declarations including that compensation must be paid in accordance with the EU regulation by the transmission system operator, which in this case is Eirgrid, as licensed 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 judge made the actions returnable to a date in October.