SONI: Changes planned for NI's electricity grid operator

Northern Ireland's Utility Regulator has proposed sweeping changes to how the electricity grid operator is run.

A damning 2021 report by the regulator found that the System Operator for NI (SONI) was insufficiently independent of its parent company.

It said this may have led to consumers being overcharged for their electricity.

The regulator is now proposing that SONI should have an independent board of directors.

SONI has been owned by EirGrid, an Irish state company, since 2009.

Lack of transparency

A condition of SONI's licence is that it must have full operational independence.

However, the regulator's investigation found that SONI's board of directors was effectively toothless.

It said there was a lack of transparency on how EirGrid group costs were being assigned to SONI, costs which have risen consistently and reached £17m in 2018.

It also found limited incentives for SONI to challenge those costs and "sub-optimal" procurement decisions.

The regulator has been consulting on how best to remedy those problems.

New board recommended

It has criticised EirGrid's attitude during that consultation saying the firm has "not engaged constructively with the detail of any of the options developed by the regulator, or the views of stakeholders".

"Instead EirGrid rejects each of them and floats the possibility of legal challenge should the regulator proceed with any changes to their current governance structures."

The regulator's recommendation is that SONI will appoint the directors of its board, with Eirgrid allowed to nominate one non-executive director.

It says the new board should be in place from 1 January 2023 and that SONI must be managerially and operationally separate from EirGrid from July 2024.

It also wants a service agreement between EirGrid and SONI where services are being shared or delivered in common.

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It says the changes will "provide for greater transparency and accountability of the SONI business in relation to decision making, the costs being incurred by it, the reasons for those costs, and a more balanced focus with regard to the interests of Northern Ireland consumers".

Natasha Sayee, spokesperson for SONI, said: "We note the announcement from the Utility Regulator and the proposed modifications to our operating licence, which we are carefully considering.

"As the consultation process is ongoing, we will not be making any further comment at this time."