Wragge & Co LLP Public Law and Regulation team has helped the Northern Ireland Authority for Utility Regulation to secure victory in a landmark judicial review case. According to Wragge & Co public law and regulation expert John Cooper, "the outcome of the case could deliver significant long-term benefits to energy consumers in Northern Ireland".

Power generator AES Kilroot brought a judicial review against the Utility Regulator after the introduction of the all-Ireland Single Electricity Market (SEM) in 2007. Under the terms of Northern Ireland electricity licences, the existence of a more competitive energy trading system entitles the Utility Regulator to cancel certain long-term energy sale contracts from 2010. This has the potential to deliver lower electricity prices to consumers.

The High Court of Northern Ireland rejected Kilroot's claims that the SEM would fail to increase competition or benefit consumers. Lord Justice Girvan ruled that the Utility Regulator made its decision fairly and that its conclusions about the benefits of the SEM were reasonable. The Utility Regulator retained the right to cancel Kilroot's long-term contract.

Public law and regulation partner John Cooper advised the Utility Regulator. He worked alongside JP Irvine, head of legal at the Utility Regulator. Gareth Walls at A&L Goodbody provided litigation support in Northern Ireland. John Larkin QC and David Scoffield BL of the Northern Ireland Bar represented the Utility Regulator.

John Cooper said: "This case highlights the strength of our public law and regulation practice. It involved the application of public law in a highly specialised area of regulation, which was politically significant and technically complex. The outcome endorses the benefits of the new all-Ireland SEM and defends the Utility Regulator's ability to protect the interest of energy consumers in Northern Ireland. It was a pleasure working with our client and A&L Goodbody to secure this fantastic outcome."

JP Irvine at the Utility Regulator said: "Given this case's complex mix of technical regulation, public law and energy law, it was important that this case was supported by versatile lawyers with a range of skills: the result not only speaks volumes for the Utility Regulator's decision-making and probity, but also confirms the Wragge & Co Public Law and Regulation team's credentials as a leading judicial review practice."

SEM is a wholesale energy market for the entire island of Ireland, introduced to increase competition in electricity generation. Wragge & Co played a significant role in advising on the establishment of the new electricity market.

The Northern Ireland Authority for Utility Regulation is a government department. It regulates the gas, electricity, water and sewerage industries in Northern Ireland. Wragge & Co has advised the client for five years on a range of matters. The firm was reappointed to its legal panel last year following a competitive tender.

AES Kilroot is a subsidiary of the AES Corporation, a US company which owns 123 power plants in 29 countries and has a global turnover of $14 billion. SJ Berwin and Carson McDowell provided legal advice.

Wragge & Co's Public Law and Regulation team, led by partner John Cooper, comprises public law and regulation specialists, as well as experts from across the firm. Its lawyers advise regulators, consumer councils, trade associations, listed companies, small and medium enterprises, and other public and private bodies on a range of public law issues. Highlights include acting for the Consumer Council for Postal Services on its judicial review of Postcomm and Royal Mail, advising the GB energy industry on the Energy Bill currently before Parliament and a number of NHS Foundation Trusts on health sector regulation. Clients include Cadbury Schweppes plc, EDF Energy, the Department of Health and the Gambling Commission.

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For further information about this press release, contact Kathryn Hobbs on +44 (0)121 685 2785, Rebecca Davies on +44 (0)121 685 3819, Gayle Redding on +44 (0)121 685 2708 or Rebecca Lum on +44 (0)121 260 9973

This press release may contain information of general interest about current legal issues, but does not give legal advice.