On 24 May 2018, the Danish Western High Court acquitted Elsam (now Ørsted) of the competition authorities’ claim that Elsam abused a dominant position on the market for wholesale of physical electricity in Western Denmark in the period from 1 January 2005 to 30 June 2006.
In a similar case, the competition authorities had originally found that Elsam also abused a dominant position on the market for wholesale of physical electricity in Western Denmark in the second half of 2003 and the whole of 2004. Elsam had also brought this decision before the Copenhagen Maritime and Commercial Court, where the proceedings were stayed pending the outcome of the case concerning the period from 1 January 2005 to 30 June 2006.
In light of the Danish Western High Court’s judgment, the parties have agreed on dismissing the claim that Elsam abused a dominant position on the market for wholesale of physical electricity in Western Denmark in the period from the second half of 2003 and the whole of 2004. In light hereof the Court has awarded Elsam DKK 1.5m in costs and closed the case.
As a consequence, the cases between Elsam and the competition authorities have now reached a final conclusion.
“We’re very pleased that the cases against the competition authorities have now been concluded, and that the authorities’ claims against Elsam about violating the competition rules have been dismissed,” says Ørsted’s CFO, Marianne Wiinholt.
In 2007, 1,106 Danish plaintiffs headed by the Danish energy trading company ‘Energi Danmark’ brought legal action against Elsam claiming damages for losses allegedly incurred as a consequence of a violation of the competition rules which the competition authorities claimed that Elsam had committed.
Despite the fact that the competition authorities’ claims against Elsam about violating the competition rules, have now been dismissed the claimants have chosen to maintain their claims for damages and to continue with their legal action.
Reverses provision and increases EBITDA guidance
Ørsted has made a provision of DKK 298 million plus litigation interest from the commencement of the action for damages to cover any damages payable. As the competition authorities’ claims against Elsam about violation of the competition rules have now been dismissed, Ørsted is reversing the provision.
The reversal of the provision in combination with better than expected wind speeds in August leads to a DKK 0.5 billion increase in the EBITDA outlook for the 2019 financial year, which is now expected to amount to DKK 16-17 billion.
Facts about the Elsam cases
- In November 2005, the Danish Competition Council found that Elsam had abused its dominant position on the market for wholesale of electricity in Western Denmark by charging excessive prices in the second half of 2003 and the whole of 2004.
- In November 2006, the Danish Competition Appeals Tribunal set aside the Danish Competition Council’s decision, but also held that Elsam had, to a certain extent, abused its dominant position on the market for wholesale of electricity in Western Denmark to control the price formation in the second half of 2003 and the whole of 2004.
- In January 2007, Elsam brought the case before the Copenhagen Maritime and Commercial Court regarding the second half of 2003 and the whole of 2004. The Copenhagen Maritime and Commercial Court subsequently stayed the proceedings pending the outcome of the corresponding case regarding the period from 1 January 2005 to 30 June 2006.
- In 2007, the Danish Competition Council found that Elsam had abused a dominant position on the market for wholesale of physical electricity in Western Denmark in the period from 1 January 2005 to 31 December 2006.
- In 2008, the Danish Competition Appeals Tribunal upheld the Danish Competition Council’s decision for the period from 1 January 2005 to 30 June 2006, but set aside and remitted the decision for the second half of 2006.
- In 2008, Elsam brought the Danish Competition Appeals Tribunal’s decision concerning the period from 1 January 2005 to 30 June 2006 before the Copenhagen Maritime and Commercial Court.
- In 2007, 1,106 Danish plaintiffs headed by the Danish energy trading company ‘Energi Danmark’ brought a case for damages against Elsam claiming damages for losses incurred in the period from 1 July 2003 to 31 December 2006.
- On 30 August 2016, the Copenhagen Maritime and Commercial Court upheld the Danish competition authorities’ claim that Elsam violated the Danish competition rules in the period from 1 January 2005 to 30 June 2006.
- On 24 May 2018, the Danish Western High Court acquitted Ørsted and dismissed the claim that Ørsted had violated the competition rules.
- On 25 October 2018, the Danish Appeals Permission Board rejected the competition authorities’ petition for leave to appeal the case to the Danish Supreme Court.
- The Court closed the case on 25 September 2019, after the parties had agreed to dismiss the claim that Elsam had abused a dominant position on the market for wholesale of physical electricity in Western Denmark in the period from the second half of 2003 and for the whole of 2004. The Court also awarded Elsam DKK 1.5m in costs.
For further information, please contact:
Media Relations
Carsten Birkeland Kjær
+45 99 55 77 65
Investor Relations
Allan Bødskov Andersen
+45 99 55 97 69
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs and operates offshore and onshore wind farms, bioenergy plants and provides energy products to its customers. Headquartered in Denmark, Ørsted employs 6,300 people. Ørsted’s shares are listed on Nasdaq Copenhagen (Orsted). In 2018, the group’s revenue was DKK 76.9 billion (EUR 10.3 billion). For more information on Ørsted, visit orsted.com or follow us on Facebook, LinkedIn, Instagram and Twitter.
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