The electricity regulator has claimed at the High Court that an ESB subsidiary, which supplies electricity to commercial power users, has a competitive advantage over its rivals because of its close ties with the ESB.

Mr Richard Nesbitt SC, for the regulator, Mr Tom Reeves, said ESB Independent Energy was privy to information about a potential customer's energy consumption profile that would put it at a distinct advantage. The allegations were made during the hearing of an application by the regulator to lift a stay granted to the ESB company on December 22nd, restraining the implementation of the regulator's 10-point directive aimed at achieving a level playing pitch in the deregulated energy supply market. The focus of that challenge is expected to be on a provision requiring it to clear contracts with the regulator before their implementation.

Mr Nesbitt said a complaint had been made by ePower, a rival independent supplier, about this situation.

After consultation with ESB Independent Energy and discussions with employees, the regulator decided the roll-out of competition was not to be improperly interfered with and he issued his 10-point directive.

Mr Reeves was contending the directive was perfectly in order and there was no reason to challenge it. The hearing continues today.