Agreement on principles of a distribution grid merger in Sør-Trøndelag

16.09.2009 08.00 | pressrelease

(Trondheim, 16 September 2009) Trondheim Energi and TrønderEnergi have today agreed on principles for a power distribution grid merger in the county of Sør-Trøndelag. The companies will start commercial negotiations with the intension of merging the grid operators Trondheim Energi Nett and TrønderEnergi Nett.

The merger will be implemented by TrønderEnergi increasing its stake to 51 per cent of the merged company from the expected merger date 1 January 2010, while also committing to purchase the remaining 49 per cent of the company from 1 January 2013. The value of the merged companies will be determined through negotiations.

The merger will lead to grid tariffs in the two grid areas evening out. The parties agree that the purpose of the merger is to make the company one of the most effective grid operators in Norway. In the longer term, this might give the customers yet lower grid tariffs and the owners higher return on their capital.

Through this merger, Trondheim Energi and TrønderEnergi are laying the foundation for a restructuring of the distribution grid activity in Sør-Trøndelag, heading for a more resource-efficient structure that will benefit grid customers as well as the companies and their owners.

“This solution highlights the role of Statkraft as an industrial developer, where we work with regional industry players to find good solutions. As the owner of Trondheim Energi we consider the merged company a natural consequence of our ambition to help create a better and more efficient distribution grid activity in Norway,” says Jon Brandsar, Executive Vice President of Statkraft and board chair of Trondheim Energi.

“TrønderEnergi is positive to this solution, because the current owners of the distribution grids are cooperating to lay the foundations of a strong and efficient grid operator which in due course will be owned locally,” says board chair Per Kristian Skjærvik of TrønderEnergi.

The parties will now negotiate a merger agreement and other agreements. Their objective is to ensure that the company is set up and operated in line with the intentions, as well as safeguarding the employees’ interests and rights in the merger.

The merger is intended to come into effect from 1 January 2010.

Statkraft is Europe's largest renewable energy company. The Group develops and generates hydropower, wind power, gas power and district heating, and is a major player on the European power exchanges. Statkraft also develops marine energy, osmotic power solar power, and other innovative energy solutions. In 2008 Statkraft posted gross operating revenues of EUR 3.1 billion. The group employs 3,200 staff in more than 20 countries.