- In 1995, which was a wet year, Norway produced 123 TWh of electricity. In 1996, which was a dry year, the production was only 105 TWh. In order to even out such big variations Norway has developed a large reservoir capability. As of 1 January 1997 the total energy capability of these reservoirs was 83,2 TWh. The hydro electricity potential, which includes undeveloped rivers, is at the same time estimated to 178,3 TWh. These figures—and the other figures in this article—are taken from the Fact Sheet 97, issued by the Ministry of Petroleum and Energy (MOE).
- Norway has 4,000 river systems which are spread all over the country.
- If utilised fully, this capacity makes it possible to transport about 20 TWh per year between Norway and the other Nordic countries.
- There are 127 production companies and 104 distribution utilities in Norway. In addition there are 96 vertically integrated companies on the local level. Some of the latter also own regional grids and even parts of the central grid.
- There are 23 of these regional utilities.
- Statskraftverkene, ie the state, owned approximately 85 per cent of the central grid and 30 per cent of the nation's production capacity.
- Statskraftverkene had a 90 per cent share of this market.
- Act no 50 of 29 June 1990. The EA entered into force 1 January 1991.
- In both respects the Norwegian deregulation has been much more radical than that of the recent EC directive on the internal market for electricity, cf Parliament and Council Dir 96/92/EC chapter VII and VIII.
- NOU 1985: 9 p 24.
- Bjørndalen, Hope, Tandberg & Tennbakk, Markedsbasert kraftomsetning i Norge, 1989.
- Cf Ot prp nr 43(1989-90) and Innst S nr 67 (1989–90).
- Cf Parliament and Council Dir 96/92/EC art 3.2. As to the member states, the concept of public service plays a particularly important role in France, cf Jean-Paul Bouttes & Raymond Leban, Utilities Policy p 134–136, 1995.
- This institutional point of view is reflected in Coase, The Firm, the Market and the Law, 1988.
- Cf the prohibitions against restrictive practices and abuse of dominant position.
- See ‘Necessity of coordination’ below for further discussion.
- This illustrates my point concerning regulatory distinction—or rather lack of it—‘Regulatory objectives and means’ above.
- Both companies started operations on 1 January 1992.
- Act no 71 of 30 August 1991.
- Due to the sector political dimension the state is under the Act ultimately responsible for the enterprise's financial obligations, which includes bankruptcy.
- The central grid interconnects the regional grids throughout the country. It also interconnects the national grid system to the grid systems of other countries, in particular Sweden. In technical terms, the central grid comprises the 132, the 300 and the 420 kV lines.
- The two companies each own 50 per cent of Nord Pool, which is organised as a limited company.
- See ‘Necessity of coordination’ below.
- See ‘Historical background’ above.
- Royal Decree of 7 December 1990 section 4–4 (a).
- That would create political opposition from the municipalities, cf the ownership structure of the regional and local entities.
- Act no 16 of 14 December 1917 and Act no 17 of 14 December 1917.
- Cf the ICA section 4 and the WRA section 10 no 2.
- See ‘Historical background’ above.
- The regulating power market was established on 4 May 1992.
- In Norway the market management of the spot marked is also regarded as a natural monopoly due to its close connection to the system operation.
- See ‘Regulation of the entities’ above.
- Cf St prp nr 100 (1990-91) and Innst S nr 28(1991- 92).
- These negotiations were finalised during the autumn of 1993.
- See ‘Regulation of the entities’ above.
- It should be mentioned that the contract regulation includes important contracts in addition to the central grid contract, but the scope of this article does not permit me to go further into this.
- See ‘An institutional approach’ below.
- In practice, the NVE issues new sets of guidelines every year, even though the modifications compared to the earlier guidelines in certain instances have been relatively minor.
- Nord Pool is—of course—also a market organiser as fer as the electricity exchange is concerned.
- See ‘A two-stage procedure’ above.
- Nord Pool manages the spot market. Since the spot market is an instrument in system operation, Nord Pool is also subordinate to Statnett.
Journal of Energy & Natural Resources Law
Volume 16, 1998 - Issue 1