Governance of Northern Ireland Electricity

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Client Northern Ireland Authority for Utility Regulation (NIAUR)
Dates 2011
Service(s)Policy & Economics, Regulation & Competition, Review & Evaluation
CEPA was commissioned by the energy regulator, NIAUR, and Electricity Supply Board (ESB) in Northern Ireland to review their governance following the acquisition of NIE. The project focused on understanding the current ESB structure, how NIE fit within that and the Mechanisms that were in place for NIE to remain fully compliant with its licence conditions (primarily those detailed in the open Transmission Licence Change Consultation). The corporate structure of ESB was analysed to see how it related to the compliance around NIE ringfencing, which was required by the Utility Regulator, NIAUR.

Following this review, CEPA made recommendations across a range of issues for this integrated energy company, including issues such as network independence, procurement and the availability of resources.
There were a number of areas where we recommended particular changes to the Licence and Compliance Plan in order to: appropriately update definitions in the Licence to reflect current circumstances; ease restrictions that were unnecessarily broad in the new group structure; and bring some protections up to date.