A London tribunal has given the green light for a £790m lawsuit against European power cable suppliers to proceed to trial, with allegations of a cartel inflating UK electricity costs, Reuters has reported.
The Competition Appeal Tribunal (CAT) last month certified the case, which alleges that Italy’s Prysmian, France’s Nexans, and Denmark’s NKT overcharged British consumers.
The ruling was published on 3 May, setting the stage for a trial that seeks damages on behalf of about 30 million consumers in Britain.
The lawsuit is led by Clare Mary Joan Spottiswoode, the former head of Britain’s gas regulator.
It stems from the European Commission’s 2014 decision, which found that Prysmian, Nexans, NKT, and other companies were involved in a decade-long power cable cartel.
The legal team representing the consumers contends that the inflated costs for cables were ultimately borne by the end-users, a claim the defendants contest.
While the defendants’ lawyers did not object to the certification of Spottiswoode’s case, they expressed concerns regarding the distribution of any potential damages.
The CAT has stipulated that the case’s certification is contingent upon the claimants’ lawyers presenting a more detailed plan for the allocation of damages to the affected consumers.
The lawsuit, which includes interest, could amount to as much as £790m. The case is now set to advance towards a comprehensive hearing, although it is not expected to commence until late 2025 at the earliest.
Representatives from Nexans and NKT are yet to issue a statement regarding the tribunal’s decision. Similarly, Prysmian has not responded to requests for comment on the matter.
Spottiswoode was quoted by Reuters as saying: “This is an important legal milestone toward the claim’s goal of achieving justice for the millions of UK electricity customers who suffered from the damaging anticompetitive behaviour of corporates at the top of the supply chain.”
