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Hochtief mulls appeal after Glendoe ruling

12 April 2018 | By Neil Gerrard

Glendoe was shut down in 2009 (Image: SSE)

Hochtief is considering an appeal at the Supreme Court in London after it was ordered to pay out more than £100m in compensation over the collapse of a tunnel at SSE Generation’s Glendoe hydro scheme almost 10 years ago.

Glendoe was shut down just months after it opened in January 2009 following a rockfall, with operations at the scheme not resuming until nearly three years later.

SSE made a £130m claim against Hochtief at the Commercial Court over the scheme, but lost in 2016.

Now it has won compensation at an appeal after two of three judges at the Court of Session ruled in its favour.

Lord Menzies and Lord Glennie ruled that the appeal should be allowed and that SSE Generation should be awarded more than £107m over the cost of the recovery of the project, along with a further £1m in damages.

Martin Pibworth, wholesale director at SSE, said: “SSE welcomes the positive decision of the Court of Session concerning the tunnel collapse at our Glendoe Hydro Scheme near Fort Augustus.

“The Hydro Scheme had to be shut down for nearly three years whilst rectification works resulting from a defect which existed prior to take over of the scheme by SSE were carried out.

“Since its re-opening in 2012, Glendoe has been making an important contribution to Britain’s electricity supply.”

But a spokesman for Hochtief said: “Hochtief will review the decision in more detail and assess the available options including a further appeal to the Supreme Court in London.”

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