Energy giant loses £130m case

AN energy giant has lost a £130 million damages court battle following a tunnel collapse at a new Highland hydro-electric scheme.

SSE Generation took legal action against engineering contractor Hochtief which carried out tunnelling work at the Glendoe site.

But a judge at the Court of Session in Edinburgh has now ruled the main part of the SSE claim has failed.

Lord Woolman said: “I am satisfied that Hochtief did exercise reasonable skill and care. I reject SSE’s case as it depends on the accumulation and interpretation of all the data that has been obtained since the collapse.”

But the judge also held that the German-headquartered contractor breached obligations by not returning to repair the tunnel and said he was minded to award SSE £1m “low availability damages” – the compensation limit if the hydro plant failed to achieve targets in the two years after completion.

The Glendoe scheme was built between 2006 and 2008 but failed eight months after take over following a collapse in the main tunnel.

SSE later brought in another firm to carry out remedial works, which took longer and cost more than expected. The power firm contended that Hochtief had misclassified rock and failed to install the correct support.

The contractor denied liability and maintained that it exercised reasonable skill and care in the design and construction of the tunnel.

In the court action Hochtief had counter claimed against SSE for £5.4m.