After the Danish Competition Authority expressed concern about the existing gas sales agreement between DONG and HNG Midt-Nord Salg that runs until 2009, the companies have decided to adjust the agreement. The decision was made even though DONG does not share the Competition Authority's concern about the agreement's potential restriction of competition on the natural gas market.
The 2003 agreement - which was intended to ensure that HNG Midt-Nord would be supplied with natural gas at competitive prices prior to the full liberalisation of the gas market on 1 January 2004 - was concluded after a dialogue with the European Commission and was submitted to both the Euro-pean Commission and the Competition Authority.
However, in autumn 2005, the Competition Authority expressed concern about two elements of the agreement:
First, that the gas price is regulated according to two different mechanisms. Second, that the agreement gives DONG the sole right to supply gas to HNG Midt-Nord Salg, which should be seen in the context of highly flexible supply terms.
The introduction of the new agreement means that the Competition Authority's concerns have been addressed. This also appears from the Competition Council's statements of today, which DONG is pleased to note.
The amendments to the terms of the agreement will have no financial implications this year.
For more information about DONG, please contact:
Kurt Bligaard Pedersen, Executive Vice President (Trade & Supply), at +45 4517 1565
Michael Steen-Knudsen, Head of Investor Relations, at +45 4517 1556
Jens Tovborg Jensen, Corporate Communication, at +45 4517 1565