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Ireland: Electric monopoly in hot water after clashing with regulators

 |  November 26, 2012

Experts say ESB is under pressure to get back on track after its subsidiary Northern Ireland Electricity reported a shortfall of about €564 million after the utility regulator did not grant ESB price increases the electric company said were necessary. NIE may also find conflict, according to reports, with the Competition Commission after NIE rejected the utility regulator’s ruling on price controls for the company. ESB bought NIE in 2010 for €1.5 billion; NIE is now claiming its bond ratings are in jeopardy – as is its financial support from ESB – if it cannot find adequate financing from price increases. NIE’s prices are dictated by the utility regulator because NIE is a regional monopoly.

Full Content: Independent.ie

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