The Energy Board of Appeal has made a decision in a complaint concerning the Energy Regulatory Authority’s termination of Energinet’s reservation of capacity at the transmission system Skagerrak 4 between Norway and Denmark. Horten has advised the Norwegian power companies Lyse Produksjon AS and Statkraft Energi AS in connection with the complaint.

On 5 July 2018, the Energy Board of Appeal made a decision in a complaint concerning the Energy Regulatory Authority’s (now the Supply Regulatory Authority) termination of the Authority’s method approval of Energinet’s 100 MW reservation at the transmission system Skagerrak 4 between Norway and Denmark. The Energy Board of Appeal changed the Energy Regulatory Authority’s decision so that the termination of the method approval will not come into force until 1 January 2020 when Energinet’s five-year reservation expires.

THE ENERGY REGULATORY AUTHORITY’S TERMINATION OF METHOD APPROVAL

On 2 December 2010, the Energy Regulatory Authority method approved Energinet’s reservation of 100 MW at the fourth transmission system between Norway and Denmark in a five-year period from 1 January 2015 to 31 December 2019.

On 28 March 2017, the Energy Regulatory Authority decided to terminate the reservation with effect from 1 January 2018. The reasons for the termination were, among others, considerations for national economy and to ensure a competitive market.

COMPLAINTS TO THE ENERGY BOARD OF APPEAL ABOUT THE ENERGY REGULATORY AUTHORITY’S TERMINATION

Energinet and the Norwegian electricity TSO Statnett complained about the Energy Regulatory Authority’s decision.

As suppliers of system services to the Danish electricity market in the reserved part of Skagerrak 4, the Norwegian power production companies Lyse Produksjon AS and Statkraft Energi AS were also affected by the termination of the reservation. Consequently, these two companies also complained about the decision.

The complaints concerned the question whether the Energy Regulatory Authority had originally provided a temporary or fixed-term method approval, or whether the termination was covered by the administrative rules on withdrawal of preferential administrative acts.

The Energy Board of Appeal agreed with the claimants that the Energy Regulatory Authority’s termination of the approval of the reservation at Skagerrak 4 was to be considered under the rules on withdrawal of preferential administrative acts, and that the termination, taking into consideration the parties’ justified expectations, could therefore not expire until 1 January 2020 at the earliest.

Horten has advised the Lyse Produksjon AS and Statkraft Energi AS in connection with the complaint.

contacts

Christian Tullberg

Partner

Rene Frisdahl Jensen

Senior Attorney