The companies behind a prominent English offshore windfarm project have accused Nexans, the Norwegian arm of a major global power cable manufacturer, of overcharging for cables in a trial that is seeking £49.8 million ($66.2 million) in damages. The trial, currently ongoing at the Competition Appeal Tribunal, explores allegations that Nexans was involved in an anticompetitive cartel which resulted in inflated prices for high-voltage cables used in the renewable energy project.
The claimants, five companies forming a joint venture for the London Array windfarm, argue that Nexans overcharged them for essential cables used in the project. The windfarm is situated in the Thames River estuary in southern England, and its developers are seeking damages after allegedly being overcharged by £49.8 million.
The legal action follows a European Commission decision in 2014 to fine 11 power cable companies, including Nexans, over €302 million ($343 million) for their role in an international cartel operating between February 1999 and January 2009. The cartel is said to have shared markets, allocated projects, and exchanged sensitive pricing information, undermining competition in the power cable industry.
Colin West KC, representing the windfarm companies, emphasized the harm caused by the cartel, arguing that the lack of competition resulted in higher prices. “Absent the cartel, there was likely to have been more competition, and our clients were overcharged,” West stated. He further indicated that the cartel had a direct impact on the London Array project, with his clients allegedly overcharged by £14 million on underwater export cables and £3.9 million on inter-array cables.
While Nexans disputes the overcharging allegations, arguing that the bidding process for the windfarm took place after the cartel ceased its activities, West countered that evidence shows that the cartel’s influence had a significant effect on the tender process.
Nexans’s legal counsel, Tony Singla KC, contends that the claimants’ evidence does not prove any direct effect on the tendering process, highlighting that Nexans employees involved in the bidding process were not aware of the cartel’s existence. “There’s nothing in this case to suggest that anyone at Nexans Norway had knowledge of the cartel,” Singla argued.
The trial is set to continue, with Judge Jonathan Richards presiding over the case alongside members Andrew Lenon KC and Anthony Neuberger. The proceedings will address whether the cartel’s actions led to the alleged overcharging and if the London Array companies are entitled to the claimed damages.
