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Competition Council permits merging of two energy wholesale traders and producers

On 4 July, Latvia’s Competition Council decided to permit the merging deal as a result of which Enefit Green AS will gain decisive influence over Nelka Energia AS by purchasing 100% of the company’s shares. Permission was given because the merge is not expected to have a major impact on competition on the market, the council explains.

Both participants of the merge are registered in Estonia. Both indirectly own and manage biomass co-generation power plants in Latvia. Those plants produce heating and electrical energy: Enefit Green AS owns SIA Enefit Power in Valka and Heat Valka. Nelja Energia AS owns subsidiary SIA Technological Solutions in Brocēni. Enefit Green AS is owned by Eesti Energia AS, which is an Estonian state-owned international energy company.
 

«Activities of both companies in Latvia overlap only on the electricity production and wholesale market. Territories of the biomass co-generation plants, on the other hand, do not overlap. This means companies work in different geographical production and supply markets. During the investigation, CC concluded that the market volume of the two companies is not significant enough to impact the state of competition on the market. Change of ownership for Nelja Energia AS will not create major changes for the market,» the council explains.
 

After assessing information provided by both companies and the information already in Competition Council’s hands, experts concluded the merge would not change Latvia’s electricity production and wholesale trade market structure or competition. Because of that, the merge was permitted, Competition Council said.

BNN

11-07-2018
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