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The QUINN-group is at a loss to understand the NIAUR’s determination, published on the 15th May, that a legitimate rebate application for infrastructure upgrade is to be denied solely on the basis of a disputed legal technicality. We are extremely disappointed by the approach of the NIAUR and the lack of any commercial realism demonstrated in the matter. Their determination is based on a narrow and highly technical legal interpretation, which, apart from being incorrect in our view, is immensely damaging to economic development in Fermanagh and fails to recognise the objectives of both the infrastructure reinforcement project itself and those of the Single Electricity Market (SEM) in general. The SEM was introduced primarily to promote competition and the equality of opportunity throughout the Country.

By way of background the QUINN-group paid over £600k to bring the first 33kV connection from Enniskillen in 1986 when it set up the first Cement plant. This was a huge sum at that time but in order to build the business locally and there was no other alternative. Over the intervening years, while it has built up the employment levels in the area, it has continued to contribute to the upgrade and strengthening of that connection, which has benefited all commercial and domestic users locally. Now having established an employment base of over 1,300 much needed jobs in Derrylin and Ballyconnell, plus a further 750 jobs in Enniskillen with very little by way of industrial standard utility infrastructure. We are immensely disappointed by the approach now taken. Faced with numerous failures and outages on the electricity connection to its glass and cement works in the late 90's and early 2000's, QUINN-glass and QUINN-cement went ahead with the investment in this new line upgrade with the clear assurance that the costs would be recoverable under the proposed new SEM structure.

The legal technicality, which has been cited in the NIAUR's decision arises from a late change, first published in December 2007, in the Post-SEM connection charging arrangements. By this time the project was practically complete and paid for by QUINN-glass and QUINN-cement. The extremely narrow legal interpretation adopted in the NIAUR's decision is therefore all the more frustrating.

We find it extraordinary that having put the initial infrastructure in place in 1986 at our own cost and despite an extremely poor service in this area over the past 30 years it is now proposed that QUINN-group pay for the entire infrastructure upgrade.Whilst this will benefit the local community and NIE will gain from the increased energy usage, the cost imposed on our manufacturing divisions is entirely inequitable.

This basic infrastructure is critical, not just in maintaining and growing local manufacturing jobs in Fermanagh, but also is a vital selling point in making the area even marginally attractive to inward investment. We cannot therefore understand the decision and clearly the NIAUR have done a major disservice to this area by it. The costs associated with the upgrade are insignificant in the context of the total N.Ireland electricity infrastructure budget but are enormously important to this area and the continued growth of industry and jobs here. When compared with any other area in N.Ireland the imbalance could not be more stark or the unfairness more great. The infrastructure upgrade and the application by QUINN-glass and QUINN-cement have had full cross-party support from the outset.

In consideration of the NIAUR's view of the legal technicalities, new applications have now been prepared in respect of the individual legal entities, which have incurred the cost of the improved infrastructure and we are advised that this should eliminate any technical grounds for refusal. We trust that this will lead to a speedy resolution and payment of the due amounts.