In October 2010, the Authority cleared,subject to remedies, the acquisition by ESB, Ireland’s largestelectricity utility, of Northern Ireland Electricity (“NIE”) which ownsthe electricity transmission and distribution systems in NorthernIreland. ESB is active in the generation, transmission, distribution,wholesale and retail supply of electricity.

In the Republic of Ireland, ESB owns and operates the electricitydistribution system. It also owns the electricity transmission system,with an independent company, EirGrid, acting as licensed operator andhaving responsibility for the planning and development of this grid. InNorthern Ireland, the electricity distribution system is owned andoperated by NIE. NIE owns the transmission system in Northern Irelandand is responsible for the planning and development of this system inconsultation with SONI, its independent operator. NIE and SONI arerequired to consult EirGrid to coordinate planning and development ofthe transmission systems in both jurisdictions.

The Authority found that since each transmission and distributiongrid is legally confined to its own jurisdiction, there was nohorizontal overlap between the parties’ transmission and distributionsystems. However, it was concerned that, post-acquisition, due to NIE’srole in planning and developing the transmission grid across the island,ESB may have been in a position to acquire, through NIE, commerciallysensitive information regarding these grids. The Authority consideredthat this could have given ESB an unfair advantage in its electricitygeneration or supply business. In order to address this competitionconcern, the Authority accepted ESB’s binding commitment to prevent NIEfrom sharing commercially sensitive information with it.

William Fry acted for ESB in this transaction.