Decision Nº M/12/008 from Competition and Consumer Protection Commission, 2012-07-17

• Jurisdiction: Ireland
• Parties: Endesa Ireland Limited,SSE Generation Limited
• Date: 17 July 2012
• Decision Date: 17 July 2012
• Decision Number: M/12/008
• Court: Commissioner for Environmental Information

Merger Notification M/12/006 – Airtricity / Phoenix

DETERMINATION OF MERGER NOTIFICATION M/12/008 –

SSE /ENDESA

Section 21 of the Competition Act 2002

Proposed acquisition by SSE plc, through SSE Generation Limited, of

Endesa Ireland Limited

Dated 17 July 2012

Introduction

1. On 18 June 2012, in accordance with Section 18 of the Competition

Act, 2002 (“the Act”), the Competition Authority (the “Authority”),

received a notification of a proposed transaction whereby SSE plc

(“SSE”) would acquire sole control through SSE Generation Limited

(“SSE Generation”) of Endesa Ireland Limited (“Endesa Ireland”).

The Undertakings Involved

The Acquirer

SSE

2. SSE is an energy comp any with operati ons in the United Kingdom and

the island of Ireland. It is involved in the business of electricity

generation in the United Kingdom and the island of Ireland with

approximately 11,860MW of electricity generation installed capacity.

1

Approximately 410MW of this installed capacity can be attributed to

the State.

3. SSE is a participant in the whol esale gas market i n the United

Kingdom. SSE, however, does not sell gas in any wholesale market on

the island of Ireland. SSE also supplies gas to residential and business

customers in the United Kingdom, Northern Ireland (following the

acquisition of Phoenix Supply Limited

2

) and in the State through its

wholly-owned subsidiary Airtricity Limited "Airtri city").

4. SSE is also involved in electricity transmission and distribution in

northern Scotland and electrici ty distribution in central and southern

England. SSE is not involved, however, in electricity transmission or

distribution on the island of Ireland.

3

5. SSE also supplies electricity to residential and business customers in

the United Kingdom. SSE supplies electricity to residential and

business customers in Northern Ireland through its wholly-owned

1

Installed capacity refers to the maximum generation capacity of a plant at the time of

commissioning.

2

The Authority cleared this transaction on 15 June 2012.

See Authority Determination M/12/008

- Airtricity/Phoenix

3

Electricity transmission and distribution systems encapsulate the infrastructure through which

the transmission and distribution of electricity occurs. In the State, Electricity Supply Board

(“ESB”) is the licensed owner of the electricity transmission sy stem. EirGrid plc, a state-owned

commercial company which is independent of ESB, is the designated licensed operator of the

electricity transmission system. The electricity distribution system in the State is owned and

operated by ESB Networks, a subsidiary of ESB.