The Danish Competition Appeals Tribunal: Price coordination and bid rigging in the energy sector in West Denmark (DK1)

The Danish Competition Appeals Tribunal has decided that the company Effekthandel and the plants, who supply manual reserves to the electricity system, have illegally engaged in price coordination and bid rigging for mFRR (Manual Frequency Restoration Reserve) in West Denmark (DK1).

The plants are: Haderup Kraftvarmeværk, Feldborg Kraftvarmeværk, Vildbjerg Varme, Ørnhøj-Grønbjerg Kraftvarmeværk, Silkeborg Varme, Effektmarked.dk, B.V. Averhoff Consult ApS, og Nordic Energy Invest A/S.

The Danish Competition Appeals Tribunal’s decision is based on the Danish Competition Council’s decision from October 2023, which includes a total of 49 cogeneration plants and power plants (“the 49 undertakings”). It is, however, only Effekthandel and eight of the 49 undertakings who have brought the case before the Danish Competition Appeals Tribunal. The 41 other undertakings have appealed the Competition Council’s decision to the Danish Maritime and Commercial High Court where the cases are currently pending.

In West Denmark (DK1) mFRR is sold in auctions for every hour of the day and it is in connection with these auctions that the illegal anti-competitive agreements have been entered.

The 49 undertakings have each entered an agreement with Effekthandel to leave their pricing of the bids in the auctions for mFRR to Effekthandel. The evidence in the case shows, among other things, that the 49 undertakings have participated in a pool scheme, where Effekthandel in joint emails addressed to the 49 undertakings regularly informed about the coordinated behavior on the market and that the purpose of the pool scheme was to raise the price levels on the market.

The 49 undertakings received payment regardless of whether their bids won the auction. This is due to the fact that Effekthandel distributed the turnover from the auctions between the participating undertakings based on the amount of registered capacity from each individual pool member. Effekthandel received commission from the pool’s earnings on mFRR.

The conduct took place from September 2019 until at least August 2022.

The Danish Competition Appeals Tribunal has also decided that the Danish Competition and Consumer Authority can publish information about both Effekthandel’s customer relations (the other pool members) and the amount of MW administered in the pool. The information is published in the Danish Competition Council’s decision of 25^th of October 2023.

Read the Danish Competition Appeals Tribunal's decision on illegal price coordination (in Danish)

Read the Danish Competition Appeals Tribunal's decision on publishing information (in Danish)

Read the Danish Competition Council's decision from 25th October 2023 (in Danish)

For further information

Contact the Head of Communications at the Competition and Consumer Authority, Hanne Arentoft, at +45 41 71 50 98.