The Norwegian Ministry of Modernisation has resolved to revoke the order issued to Statkraft to sell Trondheim Energiverk (TEV). Now that it has the opportunity, Statkraft will - as previously stated - retain TEV.
The Ministry of Modernisation has today issued the following press release:
Statkraft is not required to sell Trondheim Energiverk
Statkraft will not be required to sell Trondheim Energiverk (TEV). Heidi Grande Røys, Norway's Minister of Modernisation, will Friday present a Royal Decree revoking the competition authorities' order that Trondheim Energiverk be sold.
"There has been political contention about the decision reached by the previous government. I find no reason to doubt the Norwegian Competition Authority's professional evaluation of this matter, but I have chosen to attach greater importance to other considerations. I have therefore taken the initiative to bring the matter up for renewed consideration," says Heidi Grande Røys.
"Good industrial solutions are of vital importance in the power sector, and Statkraft's alliance with regional market players such as TEV helps spread expertise and innovation. I have also chosen to attach importance to the Nordic authorities' systematic efforts to reduce bottlenecks in the power distribution grid between the Nordic countries. This will lessen the problems of competition caused by the acquisition," the cabinet minister says.
In 2002, the Norwegian Competition Authority made certain conditions governing Statkraft's takeover of Trondheim Energiverk. In the opinion of the Norwegian Competition Authority, it was presumed that Statkraft's dominant position could result in higher electricity prices. Statkraft has implemented a number of measures, but the Ministry of Modernisation found this autumn that these were not sufficient for it to approve the acquisition.
"The measures that Statkraft has implemented are not enough to guarantee that competition will remain as it was earlier. However, my considered opinion is that Statkraft can retain Trondheim Energiverk," says Heidi Grande Røys.
Stein Dale, EVP, tel: +47 2406 7211 / +47 4500 2111
Ragnvald Nærø, EVP, tel: +47 2406 7100 / +47 9008 0303
Lisbeth Lindberg, SVP, Accounting and IR, tel: +47 2406 7286 / +47 9952 3150