The Commission for the Regulation of Utilities recently announced plans to impose a series of new tariffs on certain users in an effort to reduce demand during peak hours over the coming winter period.
"If there is any perception of CRU acting ultra vires, it presents a significant risk of Judicial Review proceedings being taken, in turn leading to lengthy delays in implementation of tariff measures needed to fund the required investment," wrote Neil Walker, head of infrastructure, energy and environment at Ibec.
"There could also be adverse billing and cash flow implications, potentially resulting in acute liquidity problems," he added. "We also remain unconvinced about the wisdom of seeking to recover the full €478m of additional security-related costs in a single tariff year, given that the assets may well be needed for longer than one year," he added.
"Given questions over the legal basis of the proposed measures, and the absence of any regulatory impact analysis, Ibec recommends that these aspects of the proposals should be withdrawn, and that a more considered consultation should be launched in early 2023," said Mr Walker.
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