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Ørsted subsidiary acquitted of violating competition rules in Denmark

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Ørsted subsidiary acquitted of violating competition rules in Denmark

The Danish Western High Court acquitted Elsam of claims related to violating competition rules in Western Denmark and awarded the company 1.5 million Danish kroner.

Elsam was acquired in 2006 by Ørsted A/S.

In 2005, the Danish Competition Council alleged that Elsam had abused its dominant position in the market for wholesale electricity in Western Denmark by charging excessive prices between the second half of 2003 and during 2004. As a result, Ørsted made a provision of 298 million kroner, plus any litigation interest, to cover damages payable from when the legal action began.

Since the claims of the competition authorities have now been dismissed, Ørsted is reversing the provision, which it expects will result in an EBITDA increase of 500 million kroner in the 2019 financial year. Ørsted now expects EBITDA of 16 billion to 17 billion kroner.

Despite the dismissal of the claims against Elsam by the competition authorities, Danish plaintiffs who brought legal action against Elsam headed by Danish trading company Energi Danmark, plan to continue legal action against the company and maintain their claims for damages, according to a news release.

As of Sept. 24, US$1 was equivalent to 6.79 Danish kroner.