Decision Nº M/08/028 from Competition and Consumer Protection Commission, 2008-09-25

• Jurisdiction: Ireland
• Parties: Systems Operator Northern Ireland Limited (SONI),EirGrid plc (EirGrid)
• Date: 25 September 2008
• Decision Number: M/08/028
• Status: Cleared (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Date: 25 September 2008

Merger Notification No. M/08/028 – EirGrid/SONI

DETERMINATION OF MERGER NOTIFICATION M/08/028 -

EirGrid/SONI

Section 21 of the Competition Act 2002

Proposed acquisition by EirGrid plc of SONI Limited (System Operator

for Northern Ireland Limited).

Dated 25/09/2008

Introduction

1. On 10 September 2008, the Competition Authority (the “Authority”), in

accordance with section 18(1)(a) of the Competition Act, 2002 (“the

Act”) was notified, on a mandatory basis, of a proposed acquisition by

EirGrid plc (“EirGrid”) of the entire issued share capital of SONI Limited

(System Operator for Northern Ireland Limited) (“SONI”). The

proposed transaction involves the acquisition of sole c ontrol by EirGrid

of SONI.

The Undertakings Involved

The Acquirer: EirGrid

2. EirGrid, formed in 2001, is the independent licensed electricity

Transmission System Operator (“TSO”) and the licensed Market

Operator (“MO”) in the State. EirGrid has held the TSO licence since

2006, and the MO licence since the Single Electricity Market (“SEM”)

was established on the island of Ireland in 2007. EirG rid is a publicly

limited company and is wholly-owned by the I rish State.

3. EirGrid’s role as licensed TSO is ind ependently to provide services to all

users of the State’s electricity system, including all generators,

suppliers and high voltage customers. It does this by facilitating the

development, maintenance and operat ion of the transmission system.

EirGrid, as TSO , is prohibited under the Elect ricity Regulation Act 1999

from engaging in the generation, distrib ution or supply of electricit y in

the State.

4. In addition to its TSO role, EirGrid is the licensed MO in the State

which toget her with SONI operates th e SEM. EirGrid is ful ly regulated

and its activities are overseen by the Commission for Ene rgy

Regulation (“CER”). In acc ordance with the regulatory requirements in

both the State and Northern Ireland, EirGrid exercises its MO function

on an all-island basis through an unincorporated contractual joint

venture with SONI, known as the Single Electricity Market Operator

(“SEMO”). Since its inception in November 2007, SEMO has b een

responsible for operating the all-island wholesale ma rket for electricity,

or SEM. Ei rGrid and SONI each hold separate MO licences but SEMO is

jointly regulated on a cooperative basis in both jurisdictions b y CER

and the Northern Ireland Authority for Utility Regulation (“NIAUR”).