Awani Review

Complete News World

UK's $992m lawsuit against European power cable groups gets green light

UK's $992m lawsuit against European power cable groups gets green light

A London court has ruled that a 790 million pound ($992 million) mass lawsuit against Europe's leading energy cable suppliers alleges that a cartel led to higher electricity prices for British consumers.

A case seeking damages for around 30 million UK consumers from Prysmion (Italy), Nexans (France) and NKD (Denmark) was upheld by the Competition Appeal Tribunal (CAT) last month, according to a decision published on Friday.

Clare Spottiswoode, the former head of the UK's gas regulator, is behind the legal action following the European Commission's 2014 finding that Prysmian, Nexans, NKD and others had set up a 10-year cartel in energy cables.

The defendants deny that the companies overcharged network operators for the cables, and that those costs were passed on to consumers, according to its lawyers.

Attorneys for Prysmian, Nexans and NKD did not oppose certification in the Spottiswoode case at a hearing last month, but they raised concerns about how potential damages-interest might be distributed.

The CAT said the case should be certified, subject to further proposals by Spottiswoode's lawyers on how the damages awarded would be distributed to the plaintiff class.

The case, worth £790m including interest, will continue for a full trial, although it is not expected until the end of 2025 at the earliest.

In a statement, Ms Spottiswoode said she was pleased with the CAT's decision: “This is an important legal step towards achieving the objective of the complaint, which is to get justice for the millions of UK electricity consumers who have suffered from harmful anti-competitive behavior by companies at the top of the supply chain.

See also  Thousands of Australians protest against the vaccine

Nexans and NKT had no immediate comment. Brysmian did not immediately respond to a request for comment.