EU clears DONG Energy and Danish operator’s power deal

The European Commission found a power deal between the Danish transmission system operator and DONG Energy does not breach state aid rules. In December 2010, Energinet.dk signed a contract with […]

Register now!

By Priyanka Shrestha

The European Commission found a power deal between the Danish transmission system operator and DONG Energy does not breach state aid rules.

In December 2010, Energinet.dk signed a contract with the Danish energy company to supply power to the network at short notice to ensure the balance and technical stability of the Danish electricity system. It ran from January 2011 until the end of 2015.

Energinet.dk owns and operates Danish electricity and gas transmission grids.

Following an in-depth investigation launched in 2013, the Commission found the contract did not involve any state aid and “did not confer a selective advantage to DONG Energy”.

It stated: “The Commission has now concluded that the contract between Energinet.dk and DONG Energy conferred no selective advantage on DONG Energy.

“The Commission further assessed the price paid to DONG Energy and compared it against the price of potential alternative sources and concluded that Energinet.dk secured a competitive price for the required ancillary services in eastern Denmark.”