Report on the supervision of the utility sector

20-02-2023

Report no. 11/2022

As the Danish utility companies become part of major groups, in which some companies have a monopoly and others operate in competitive markets, the potential for inter-company transactions within the group increases. Agreements within such groups that are not made under market conditions similar to the conditions of fully competitive markets, entail the risk that the utility companies are buying services at too high a price and passing on the cost to the consumers. 

The purpose of the study is to assess the Utility Regulator’s supervision of whether the utility companies’ agreements with group-affiliated companies are made under conditions similar to the conditions of fully competitive markets. 

Rigsrevisionen assesses that the Danish Utility Regulator’s supervision of whether the utility companies’ agreements with group-affiliated companies are entered under conditions similar to the conditions of fully competitive markets is not satisfactory. The consequence is that the utility companies may have overcharged citizens and companies for distribution of electricity, natural gas and district heating. 

Rigsrevisionen initiated the study in February 2022.

Read the introduction and conclusion (PDF)