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Brønderslev Forsyning feels cheated: Could face a large fine of millions

In 2022, the utility company took over a number of assets from Øster Brønderslev Fjernvarme Amba, which the Danish Competition Council has accused of forming a cartel.
7. JUN 2024 13.25
Energi
Økonomi

It is going to be very expensive for Brønderslev Forsyning that the subsidiary Brønderslev Varme took over the activities of Øster Brønderslev Fjernvarme in November 2022 and thus the supply obligation to Øster Brønderslev.

Øster Brønderslev Fjernvarme was thus one of the 49 energy producers that, through the company Effekthandel, had violated the Competition Act in the period from September 2019 to at least August 2022. The Competition Council ruled in a ruling from October 2023. The Council believed that the companies had illegally coordinated prices to supply reserve capacity to the electricity system in Western Denmark.

As a result of Øster Brønderslev Fjernvarme's involvement in the case, Brønderslev Forsyning received a letter on June 4 from the Attorney General, the state's attorney, in which the Competition Council warns of a fine of 11.5 million. DKK, which the Attorney General believes that Brønderslev Varme must pay to the state. It is a ruling that Brønderslev Forsyning finds completely unreasonable, it says in a press release.

- Brønderslev Varme took over a number of assets from Øster Brønderslev Fjernvarme Amba at the end of November 2022. Brønderslev Forsyning was not aware that the Competition Council had contacted Øster Brønderslev Fjernvarme Amba about a possible fine for cartel formation, says the Chairman of Brønderslev Forsyning, Lasse Riisgaard, and continues:

- The Attorney General now claims that Brønderslev Varme, as a "continuing company" after Brønderslev Varme took over the assets, is now responsible for the problem and thus the fine.

Out of proportion

The case could have major financial consequences, and according to Lasse Riisgaard, the fine is excessive.

- Calculations indicate that Øster Brønderslev Fjernvarme has 'earned' in the order of DKK 25,000-50,000 in a total of 21 months from the collaboration with Effekthandel. It is therefore completely out of proportion that the treasury wants more than DKK 11 million from Brønderslev Forsyning and even floats the possibility of 10% of the group's total turnover, which was DKK 178 million in 2022. The Attorney General also does not fail to note that we are owned by Brønderslev Municipality, and that a fine could therefore potentially also be based on the entire turnover of Brønderslev Municipality. That is crazy, says Lasse Riisgaard.

Together with the majority of the companies behind Effekthandel, Brønderslev Forsyning has brought the case to the Competition Council in the Maritime and Commercial Court via a joint lawyer. But if the utility companies are on the losing side, there are no plans to collect the bill even in Brønderslev Forsyning.

- We were not informed that Øster Brønderslev Fjernvarme had received this inquiry. On the contrary, we were informed that there are "no pending cases".   Therefore, I and the rest of the board do not understand why we should be involved in the case. We have also informed the former board of Øster Brønderslev Fjernvarme that if, contrary to expectations, we are convicted, we will send the bill to them, says Lasse Riisgaard.

The case is expected to be heard in court in 12-14 months at the earliest.

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https://www.doi.dk/en/solenergi/artikel/broenderslev-forsyning-foeler-sig-foert-bag-lyset-kan-haenge-paa-stor-millionboede

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