SONI: Grid operator challenges regulator's shake-ip plan

The System Operator for NI (SONI) is responsible for the supply of electricity to all homes and businesses in Northern Ireland

The firm which runs Northern Ireland's electricity grid is legally challenging a move by the Utility Regulator to change how the business 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 electricity.

The regulator is consulting on changes to SONI's governance but it claims the regulator is acting outside its powers.

It is seeking a judicial review of the regulator's actions.

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

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.

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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.

SONI contends that matters relating to its governance affect the Single Electricity Market (SEM) and, as such, should be considered by a different regulatory body, the SEM Committee.

A spokesperson said: "As the governance of SONI is a matter affecting the SEM, SONI believes the Utility Regulator is acting 'ultra vires' or beyond its powers in seeking to modify SONI's licence conditions in this regard."

SONI is also challenging the SEM Committee for what it says has been a refusal to engage on the issue.

The spokesperson said: "Judicial Review proceedings have been initiated against the SEM Committee on the basis that its purported decision that the issue of SONI's governance is not a SEM matter is unlawful.

"As this is a legal matter which is ongoing, there will be no further comment at this time."