It was in breach of competition rules when a number of CHP plants coordinated their bids at electricity price auctions and thus obtained higher prices than they would otherwise have received. This was The Competition Appeals Board reached this conclusion about a year after the Competition Council reached the same conclusion in the case.
- Companies that are competitors may not enter into agreements restricting competition. The plants in this case have entered into an agreement to coordinate their pricing at auctions for reserve capacity, concludes Deputy Director Tine Rønde from the Danish Competition and Consumer Authority.
Eight power plants that provide capacity to the electricity system entered into an agreement with the company Effekthandel that the company would be responsible for pricing at the auctions. The earnings from the auctions were subsequently divided between the plants, regardless of whether they won the auction or not. According to the original decision, the violation of the rules took place from September 2019 to at least August 2022.
Energinet pays over 20 million extra
According to Energinet's calculations, the cartel caused prices to increase to 68 DKK per MW in 2020, where the price was normally around five DKK per MW. This has meant additional costs of 22 million. DKK for Energinet alone in 2020. A total of 49 plants are included in the case complex. 41 other plants have appealed the Competition Council's decision to the Maritime and Commercial Court.
The Danish District Heating industry association wondered at the time about the Competition Appeals Board's decision.
- They have asked the authorities whether this model was okay. They have not been given the green light for this, but they have not been told that they were not allowed to do so, said Rune Birk Nielsen, head of press and communications at the time.
All the CHP plants in question must be self-sufficient and are typically owned by the customers jointly. Therefore, no one has personally benefited from the increased prices.
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