THE QUEEN (on the application of SSE GENERATION LIMITED & Ors) v COMPETITION AND MARKETS AUTHORITY

THE QUEEN (on the application of SSE GENERATION LIMITED & Ors) v COMPETITION AND MARKETS AUTHORITY

GEMA's approval of the CUSC modification failed to secure compliance with Regulation 838/2010 because it did not properly reflect the connection exclusion, constituting an error of law. The CMA erred in upholding this decision. However, the challenge to GEMA's interpretation of the connection exclusion and the application of the ancillary services exclusion failed, as these were matters of regulatory evaluation and statutory interpretation properly exercised.

Parties
Claimant: SSE Generation Limited; Claimant: Keadby Generation Limited; Claimant: Medway Power Limited; Claimant: Griffin Windfarm Limited; Claimant: SSE Renewables (UK) Limited; Claimant: Keadby Windfarm Limited; Claimant: Strathy Wind Farm Limited; Defendant: Competition and Markets Authority; Interested Party: Gas and Electricity Markets Authority; Interested Party: National Grid Electricity System Operator Limited; Interested Party: Centrica PLC; Interested Party: British Gas Trading Limited
Jurisdiction
England and Wales
Judgment Date
11 April 2022
Procedural Posture
Judicial Review / Final Judgment
Outcome
Claim partly allowed
Legal Topics
Electricity Transmission Charges, Regulatory Compliance, Judicial Review, Interpretation of EU Regulations
Energy Law Administrative Law EU Law Electricity Transmission Charges Regulatory Compliance Judicial Review Interpretation of EU Regulations

Case Brief

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Parties

SSE Generation Limited

Claimant

Keadby Generation Limited

Claimant

Medway Power Limited

Claimant

Griffin Windfarm Limited

Claimant

SSE Renewables (UK) Limited

Claimant

Keadby Windfarm Limited

Claimant

Strathy Wind Farm Limited

Claimant

Competition and Markets Authority

Defendant

Gas and Electricity Markets Authority

Interested Party

National Grid Electricity System Operator Limited

Interested Party

Centrica PLC

Interested Party

British Gas Trading Limited

Interested Party

Procedural Posture

Judicial Review / Final Judgment

Legal Issues

  1. 1 Whether GEMA's approval of CUSC modification complied with Regulation 838/2010
  2. 2 Correct interpretation of the 'connection exclusion' in Regulation 838/2010
  3. 3 Proper application of the 'ancillary services exclusion' in Regulation 838/2010

Ratio Decidendi

GEMA's approval of the CUSC modification failed to secure compliance with Regulation 838/2010 because it did not properly reflect the connection exclusion, constituting an error of law. The CMA erred in upholding this decision. However, the challenge to GEMA's interpretation of the connection exclusion and the application of the ancillary services exclusion failed, as these were matters of regulatory evaluation and statutory interpretation properly exercised.

Court Disposition

Claim partly allowed

Orders

  • SSE Generation Limited's challenge succeeds on Ground 1; GEMA's decision on CUSC modification quashed to the extent it failed to secure compliance with Regulation 838/2010.
  • Challenge fails on Grounds 2 and 3; no further relief granted.