Dong Energy is to appeal a decision by a Danish court that energy company Elsam abused a dominant position in the wholesale electricity market in western Denmark over 18 months starting in 2005.
Dong, which took control of Elsam in 2005, said it had analysed the 30 August judgment by the Copenhagen Maritime and Commercial High Court and decided to appeal it.
Dong executive vice president Thomas Dalsgaard said: “Admittedly, the Copenhagen Maritime and Commercial High Court has upheld our claim that the financial model, which was the basis for the Danish Competition Council’s decision back in 2007, was contrary to financial theory and cannot be used to determine whether the competition rules have been violated.
“Yet, the Copenhagen Maritime and Commercial High Court has surprisingly come to the conclusion that Elsam abused its position – without stating clearly in its judgment how this conclusion has been reached.
“Furthermore, the court has also rejected, without giving any reasons, to take into account that Elsam was complying with an agreement entered into with the Danish Competition and Consumer Authority concerning how Elsam should set its prices.”
Dong said the appeal does not change the Dkr298m it has set aside to cover compensation.
“The provisions are to cover compensation arising from any action for damages concerning losses allegedly suffered as a consequence of the potential violation of the Danish competition rules,” the company said.
The action for damages is currently suspended, it said.
Dong added that the Copenhagen Maritime and Commercial High Court is the first court to hear the case, and the judgment may be appealed to the next court.
Image: Dong Energy
