Electricity watchdog to review NI grid operator SONI, BBC News reports
Published by Naomi Holliman,
Digital Editorial Assistant
Energy Global,
According to BBC News, Northern Ireland's Utility Regulator has started a review of how the electricity grid operator is run.
The review is focusing on whether System Operator for Northern Ireland (SONI) is sufficiently independent of its parent company Eirgrid.
The regulator said that the operation of the electricity grid is becoming increasingly important in the context of the move to renewable energy.
Eirgrid, an Irish state company, has owned SONI since 2009. A condition of SONI's licence is that it must have full operational independence. Eirgrid operates and develops the electricity grid in the Republic of Ireland.
The Utility Regulator has said that in the years since Eirgrid bought SONI their close relationship has "given rise to a perception of Eirgrid dominance over SONI and a suspicion that Eirgrid strategy has influenced SONI policies".
"Some parties in Northern Ireland have therefore expressed concerns about whether other Northern Ireland stakeholders, including consumers, are being treated on a fair and equitable basis," it added.
As an example, it noted there was no process for SONI to exercise discretion over which Eirgrid group management costs are assigned to it. It added that it is possible that SONI compliance with Eirgrid procurement practices may have increased costs, compared with those it would have incurred if operating in a purely Northern Ireland context.
The regulator said that at a minimum the independence clause of SONI's licence needed to be amended to give greater clarity. It has also invited discussion about whether SONI should have greater managerial independence or a fully independent board of directors.
SONI's managing director Jo Aston said the business had delivered an "efficient, competitive market for customers in Northern Ireland, while assuring security of supply". She said SONI would engage with the Utility Regulator in the review.
Please click here to view the original BBC News report.
Read the article online at: https://www.energyglobal.com/special-reports/11072019/electricity-watchdog-to-review-ni-grid-operator-soni-bbc-news-reports/
You might also like
SBM Offshore and Technip Energies sign partnership agreement to form EkWiL
SBM Offshore and Technip Energies have signed a memorandum of understanding for the creation of a floating offshore wind joint venture entity, EkWiL.