Dong Energy today vowed to appeal a Danish court’s ‘surprising’ verdict.
The Copenhagen Maritime and Commercial High Court ruled in favour of the Danish competition authorities’ claim that the former Elsam abused its dominant position in the market for wholesale of physical electricity in Western Denmark from January 2005 to June 2006.
Dong Energy was formed in 2006 by the merger of six Danish energy companies – Dong, Elsam, Energi E2, Nesa, Københavns Energi and Frederiksberg Forsyning.
The company today said it would appeal the decision.
Thomas Dalsgaard, executive vice president in Dong Energy, said: “We’ve analysed the Copenhagen Maritime and Commercial High Court’s judgment, and we’ve decided to appeal it.
“Admittedly, the Copenhagen Maritime and Commercial High Court has upheld our claim that the financial model, which was the basis for the Danish Competition Council’s decision back in 2007, was contrary to financial theory and cannot be used to determine whether the competition rules have been violated. Yet, the Copenhagen Maritime and Commercial High Court has surprisingly come to the conclusion that Elsam abused its position – without stating clearly in its judgment how this conclusion has been reached. Furthermore, the court has also rejected, without giving any reasons, to take into account that Elsam was complying with an agreement entered into with the Danish Competition and Consumer Authority concerning how Elsam should set its prices.
“The case is really complex, and we do not believe that the Copenhagen Maritime and Commercial High Court’s judgment is correct. That is why we’re now using our right to appeal the decision.”
Dong Energy has set aside DKK 298 million plus litigation interest “to cover compensation arising from any action for damages concerning losses allegedly suffered as a consequence of the potential violation of the Danish competition rules”.
The action for damages is currently suspended.