DENMARK: CONSOLIDATION OF ENERGY SECTOR

Article Abstract:

The energy sector in the Jutland/Funen region is to be consolidated. Two groups are competing about the electricity companies in the region: the Norwegian company Hafslund and the Elsam own one third respectively in one of the groups, Dan El, in which eight local distribution companies own the remaining third. Dan El will take over trading activities of the local companies, and invites other companies to become partners. The other group, Disam, will focus on co-ordinating purchasing activities. Disam has invited to a meeting on Monday 31 January, and expects 15-17 companies to participate. These are said to be sceptical of joining forces with producers such as Elsam and Halfslund.

Joint ventures, Hafslund

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FRIT ELMARKED KAN SPARE SAMFUNDET FOR 3,5 MIA

Article Abstract:

A complete deregulation of the Danish electricity market would cut economic costs totalling DKr 3.5bn (USD 0.5bn) a year, according to Konkurrencer det, the Danish competition authority. Energy companies will improve productivity by 20% and thereby cut costs by DKr 2bn, and, in addition, surplus investments will be reduced by DKr 1.5bn. Capital gains could go either to consumers through reduced electricity rates, to energy companies, thereby increasing their profitability, or to the Government through increased taxes, Konkurrencer det states. What alternative is chosen is a political decision.

Comment:

Denmark: Complete deregulation of electricity mkt would cut economic costs totalling $0.5 bil/year, says Danish competition auth

Government regulation, Article

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DENMARK: POWER PLANTS RISK GOING BANKRUPT

Article Abstract:

Danish power plants risk going bankrupt owing to weak finances, according to a confidential report published by TV 2. The sector's deficit will total DKr 11bn (USD 1.6bn) by 2006, according to estimates by Energistyrelsen, the Danish energy authority, and the power plants. Jorn Wurtz, chairman of Elsam, says a capital injection is required, otherwise the company will go bust. Power plants in Denmark are not allowed to accumulate profits and build up equity capital.

Comment:

Danish power plants risk going bankrupt owing to weak finances.

Sales, profits & dividends, Electric Power Generating, Electric Power Generation

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