Statkraft works to retain Trondheim Energiverk AS

23.09.2005 08:00 | pressrelease

(Oslo, 23 September 2005) Statkraft has put together a comprehensive solution to comply with the competition-related directive it received in connection with the acquisition of Trondheim Energiverk. "We are working to retain ownership of the company, but since a decision has not yet been reached in the matter, Statkraft is compelled to prepare for a possible sale," says Statkraft's CEO Bård Mikkelsen.

In 2002 the Competition Authority ordered Statkraft to sell its shares in either Trondheim Energiverk (TEV) or equivalent production capacity in the same price area (NO2) to an independent actor. The background for the directive was the Competition Authority's belief that the acquisition of TEV may be restricting competition.

"Statkraft has worked long and hard to find a satisfactory solution. It has taken longer than desired, not least because the new, owner-neutral concession regulations that were announced have been a long time in coming. However, we have been able to put together a proposal that we believe offers good industrial solutions for central Norway, while fulfilling the intentions of the Competition Authority's directive," says Bård Mikkelsen.

"The situation has now changed considerably. We have a well-functioning Nordic market and integration is steadily gaining strength due to an expected increase in transmission capacity, among other factors.New international practice in this area of competition has also been established, and favourably received by the European Commission. Against this background we have asked the authorities to re-evaluate our case," says Mikkelsen.

Statkraft's proposal to the Competition Authority consists of the following transactions:

  • The sale of Statkraft's shares in Kraftverkene i Øvre Namsen (KØN) to Nord-Trøndelag Elektrisitetsverk FKF (NTE) in 2004.
  • The sale of Statkraft's shares in Kvænangen Kraftverk to Nord Troms Kraftlag by Finnmark Energiverk in 2004. (Finnmark Energiverk was at that time a wholly owned subsidiary of Statkraft, but was later merged into Statkraft Energi AS).
  • The agreement to lease out 65 per cent of the capacity of the Rana power plant for a period of 15 years, entered into with the Finnish companies Kymppivoima Tuotanto Oy and Etelä-Pohjanmaan Voima Oy.

"We have laid these transactions before the authorities and have great faith that we will be able to reach an agreement within the given deadlines," says Mikkelsen. "But because the case has not yet been decided, we have been compelled to prepare the sale of Trondheim Energiverk and are now contacting interested parties both in Norway and abroad. However, we still believe that Statkraft is the best possible owner for Trondheim Energiverk. We have the clear impression that the employees and the management at TEV share our view."

Statkraft aims to be a European leader in environment-friendly energy.Based on more than 100 years of knowledge and investments, the Statkraft Group is well equipped for further growth and development - and has a clearly stated desire to create lasting value. Statkraft stands for sustainable development in both an environmental and a financial sense. The group produces a total of 41 TWh per year, making it the third-largest producer of electricity in the Nordic region and the second-largest producer of renewable energy in Europe. The group has approximately 2,000 employees including the subsidiaries Skagerak Energi and Trondheim Energiverk. Statkraft also has shareholdings in the Norwegian power companies BKK, Agder Energi and Fjordkraft, as well as in E.ON Sweden.