Maritime and Commercial High Court: Illegal coordination of prices and bids in the energy sector

The court found that Effekthandel and five CHP plants unlawfully coordinated bids and prices in auctions for electricity reserves in Western Denmark. This conduct resulted in higher prices for reserve capacity.

The six cases are test cases within a complex of 50 cases between CHP and regulating power plants on the one side, and the Danish Competition and Consumer Authority on the other. Thus, a ruling has now been made in six of these cases.

The court found that the conduct was intended to restrict competition by object.

For Effekthandel, it is an aggravating circumstance that they took the initiative in forming the agreement and continuously administered and facilitated the anti-competitive practices.

For the CHP plants, the court found that they were under the mistaken belief that their actions were lawful, partly due to advice received from Effekthandel’s external lawyer. However, this mistaken belief does not alter the fact that their conduct was illegal, although it has resulted in reduced fines.

The Maritime and Commercial High Court has imposed the following fines on the CHP plants:

• Effekthandel: DKK 29,000 for having violated the rules for approximately 44 months. The court initially set the fine at DKK 1,075,000, but it was reduced because due to the maximum fine of 10 percent of the company’s turnover in the most recent audited financial year.
• Jetsmark Energiværk: DKK 300,000 for violations lasting approximately 36 months.
• Bramming Fjernvarme: DKK 200,000 for violations lasting approximately 4 months.
• Hvide Sande Fjernvarme: DKK 100,000 for violations lasting approximately 2 months.
• Brøns Kraftvarmeværk: DKK 40,000 for violations lasting approximately 40 months.
• Brønderslev Varme and Ø Brønderslev Fjernvarmeværk are jointly fined DKK 45,000 for violations lasting approximately 21 months.

Originally, the Danish Competition and Consumer Authority’s fine proposals were significantly higher, but they were reduced after new fine assessment principles entered into force on 1 July 2024. Under the new principles, consideration is given to the fact that sales of reserve capacity to the electricity grid make up a small part of the CHP plants’ business, which is mainly focused on district heating production.

The Maritime and Commercial High Court has ruled that Brønderslev Varme is jointly liable for the fine imposed on Ø Brønderslev Fjernvarmeværk. Initially, Brønderslev Varme was not included in the Competition Council’s rulings. During the case, it took over the activities of Ø Brønderslev Fjernvarmeværk, which still exists legally but without economic activity.

In October 2023, the Competition Council decided that Effekthandel and 49 CHP and regulating power plants had infringed competition law. Eight plants and Effekthandel appealed the decision to the Competition Appeals Board, which in November 2024 upheld the Competition Council’s decision. All plants and Effekthandel have further appealed the case to the Maritime and Commercial High Court, which has now ruled on the six test cases and on the issue of joint liability for fines.

For further information

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