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PR(95)01: Swedish electricity companies abolish export and import cartel vis-a-vis Norway

27.9.2002

The major Swedish electricity producers have since, the 1970's operated an organisation called KSN (Kraftindustrin's samarbetsorgan för Samköring med Norge), co‑ordinating sales and purchases of electricity in Norway. This arrangement was notified to the EFTA Surveillance Authority under the EEA competition rules in 1994.

The Authority found, after examining the facts of the case, that co‑operation within KSN ‑ in particular as regards elements of price fixing and co‑ordination of the behaviour of the major Swedish operators on the Norwegian market ‑ constituted an infringement of the EEA competition rules. Emphasis was put on the fact that Norway's electricity market is deregulated and open for competition and that the co­ordination of trade by all major Swedish electricity producers could jeopardise the proper functioning of the Norwegian market.

A statement of objections, in which the Authority stated its intention to take a negative decision in the case, was forwarded to the parties. The parties subsequently informed the Authority that the notified co‑operation within KSN would be terminated. The short term exchanges of electricity between Sweden and Norway will thus be made freely and independently by the companies concerned.

"This case illustrates that European competition rules apply also in the electricity sector" says Nic Grönvall, Member of the Authority responsible for competition matters. "It should serve as a reminder for European electricity companies that, with the increasing liberalisation of government regulations in this field, private restrictions of competition must also be removed."

For further information please contact Jonas Berggren (Competition Directorate) on tel. 226 68 67.




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