Ofreg proposals for NIE ring-fencing and independent directors

Ofreg consultation (15 pages, PDF) on proposed licence modifications as a result of Arcapita's take-over of Viridian, the owner of Northern Ireland Electricity. Ofreg proposes to require NIE to have a majority of independent non-executive directors on its board, citing the recommendations of the Combined Code on Corporate Governance. This goes further than Ofwat's rules, and Ofreg explains the difference by saying that "best practice in corporate governance has been evolving rapidly in recent years".

There is no proposal (at this stage) for requiring NIE to publish the same information as if it was listed on the London Stock Exchange. This is on the grounds of the possible costs of doing so.

These proposals follows from Ofreg's December 2006 issues paper and responses to it.

Responses by Wednesday 11 May 2007.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofreg.

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