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Allegations of illegal electricity prices puzzle industry organization

CHP plants have acted in good faith and asked authorities for advice, according to Danish District Heating.
27. OKT 2023 14.36

The criticism of 49 Jutland electricity producers for coordinating the price of electricity arouses surprise at the trade organization Danish District Heating.

The Competition Council has declared that 46 Jutland CHP plants and three so-called regulating power plants have broken the law for a number of years and, through the company Effekthandel, coordinated the prices of electricity.

According to the Competition Council's assessment, this was done to raise the price that the CHP plants could receive for supplying emergency power to the state-owned Energinet.

- We are saddened by the decision, and we are also surprised by it, says Head of Press and Communications at Danish District Heating Rune Birk Nielsen.

The affected CHP plants, all of which are members of Danish District Heating, produce both heat and electricity. For a number of years, they have offered to supply emergency power to Energinet in the event that there was not enough power from other energy sources to maintain security of supply.

The prices were reported to Energinet via the company Effekthandel.

Acted in good faith

Now both Effekthandel and the electricity-producing heating plants are accused of reporting identical prices and eliminating competition. But the heating plants have acted in good faith, says Rune Birk Nielsen.

- They have asked the authorities whether this model was OK. They have not been given the green light for that, but they have not been told that they were not allowed to do so either. That is why they have sought external legal advice, which has concluded that this model is within the framework of laws and regulations, says Rune Birk Nielsen.

According to the press and communications manager, the agreement was solely intended to cover the heating plants' costs of producing electricity.

- These companies are district heating companies that work with a self-sustaining economy. They are not supposed to make a profit. No one has a personal gain. They have only one interest, and that is to ensure that the heating price is as low as possible, says Rune Birk Nielsen.

Approximately 350 district heating plants are members of Dansk Fjernvarme, of which approximately 200 are cogeneration plants that produce both heat and electricity. The Head of Press and Communications is not aware that a similar pricing model is being practiced by other members.

The Competition Council must now decide whether the case should be brought before the courts with a view to a fine for the works involved.

/ritzau/
 

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https://www.doi.dk/en/havenergi/artikel/beskyldning-om-ulovlige-elpriser-undrer-brancheorganisation

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