The Supreme Court has referred legal questions to the Court of Justice of the EU (CJEU) relating to a dispute between renewable energy firms and the energy regulator over a decision not to compensate them if they are told to temporarily shut down generation due to issues with the electricity grid.
The cases were brought by Energia Group Holdings and a number of its subsidiaries, along with GR Wind Farms and its subsidiaries, against the Commission for Regulation of Utilities (CRU). The wind farm firms challenged a 2022 decision by the CRU not to implement an EU regulation where compensation is to be paid when the firms are told to switch off their wind turbines due to grid limitations.
In 2023, the High Court ruled that the compensation system established by the decision, which was made through the CRU’s “single energy market committee”, was “fundamentally flawed” and could not be allowed to stand. The wind farm companies had claimed the CRU was not entitled to make the decision and must implement the EU Clean Energy Package Electricity Regulation. Article 13.7 of that regulation provides that power-generating companies would receive financial compensation when they are told to reduce their energy output due to grid network limitations or issues, it was claimed.
The CRU disputed the claims and EirGrid, the grid manager, was a notice party, and by order the Attorney General, in both the Energia and GR cases.
After the High Court found largely in favour of the firms, the CRU got an appeal to the Supreme Court which had a hearing over two days in December.
On Tuesday, a seven-judge Supreme Court referred four questions for a preliminary ruling from the CJEU seeking clarification in relation to the meaning and application of article 13.7. The court said the reference raises issues of systemic importance for the functioning of the electricity market in the island of Ireland. The judges also asked that the CJEU give the reference as much priority as possible.
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