Oslo to merge grid operator Hafslund and power producer E-CO Energi

• 6 years ago (2018-03-21)
• David Flin

Distribution 122 Europe 1089

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The Norwegian city of Oslo will consolidate its ownership of the grid operator Hafslund and the power producer E-CO Energi into a single corporate entity. The companies said that this was preparation for further mergers and acquisitions. The business and financial operations of the combined entity will remain separate.

E-CO Energi is Norway’s second largest power producer, with an output of 13 TWh in 2017, and Haflsund is Norway’s largest distributor, serving 710,000 customers.

E-CO Energi said in a statement: “The combined group will target a key position in the expected consolidation in the industry to be well prepared for the expected changes in the energy industry going forward.”

Earlier this month, the Norwegian parliament had decided to prohibit power producers serving over 30,000 customers from owning both generation and distribution functions. Because Hafslund and E-CO Energi will remain independent, the merger is in line with the legislation.

The combined ownership is expected to be completed in the second quarter of 2018, It will be subject to approval by the city council of Oslo.