Review of NIE's ring-fencing licence conditions

Ofreg consultation (40 pages, PDF) on the regulatory implications of Arcapita's take-over of NIE's parent company Viridian. The only proposed areas for regulatory action relate to the financial ring-fencing and transparency licence conditions. Ofreg also suggests that the law should be changed to introduce a special administration regime and a supplier of last resort regime in Northern Ireland. Ofreg addresses any perception of a risk of a re-opening of price control proposals as follows:

Ofreg has no view of the valuation placed on Viridian group as a whole by the bid. Our work to regulate the NIE businesses does not depend on the valuation placed on their parent group. Ofreg also has no direct role in relation to the compensation paid to management. In our view, it is incorrect to extrapolate directly from the offered price for Viridian Group to a particular valuation of the regulated business ...

Neither the current chief executive or chairman of Ofreg were in post at the time of the Phoenix gas re-opening dispute.

Responses by Friday 22 December 2006.

For further information or advice please contact Franck Latrémolière.

Filed under Electricity, Ofreg.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon