Irish Regulator Backs Whistleblower in Networks Case
Ireland's Commission for Energy Regulation (CER) has found that Gas Networks Ireland (formerly Bord Gais Eireann) breached its Natural Gas Transmission Licence by concealing overrun costs incurred whilst laying a gas pipeline. But the independent regulator also expressed its frustration that it cannot impose a fine.
The regulator, acting in response to a whistleblower allegation made on October 26, 2014, was alerted that a senior staff member had deliberately concealed cost overruns that were owed to the contractor hired by the company's board to construct the pipeline. In addition, it was alleged that the money owed to the contractor was "subsequently paid through other gas infrastructure projects in Ireland that the company were involved in without observing due process or the necessary approval by the then Board of Bord Gais Eireann."
The cost of the overrun amounted to €522,000 and related to the Barnakyle to Coonagh West Gas Pipeline.
The allegations were also forwarded to the Utility Regulator for Northern Ireland (UREGNI) due to the dual jurisdiction operations of Bord Gáis Éireann through its subsidiary in Northern Ireland.
The CER said in a statement released March 30 that on March 4 it had determined that Gas Networks Ireland had breached a number of the conditions of its Natural Gas Transmission Licence.
"In breaching its licence conditions, Gas Networks Ireland failed in its duty to supply accurate information to the CER to the detriment of its customers," CER Commissioner Aoife MacEvilly said.
She said that the CER was taking a number of steps following the investigation, including to ensure that any incurred overrun costs that were being redistributed back to customers were reversed and to ensure that the same breaches were not repeated.
However, this investigation also highlights the lack of remedies the CER has to fine companies who breach regulations, something MacEvilly referred to in the CER statement.
MacEvilly said that the CER was "engaging with the Department of Communications, Energy and Natural Resources with a view to enhancing the regime for administrative sanctions, including the power to fine system operators or market participants in cases of non-compliance.”
Although the Northern Irish regulator, UREGNI, is expected to fine Gas Networks Ireland UK subsidiary about £500,000 for the breaches, the CER currently has no similar powers to implement fines.
Erica Mills