Hafslund E-CO has been established

04.07.18

By merging Norway's second largest electricity generator E-CO Energi and largest power grid operator Hafslund Nett, the City of Oslo has created Norway?s leading integrated power group.

Oslo's City Council formally voted to merge Hafslund and E-CO under a new, wholly owned holding company on 20 June this year. Hafslund E-CO AS was incorporated on 4 July 2018, with the subsidiaries Hafslund AS and E-CO Energi Holding AS. Together, they form the new group. Hafslund E-CO?s board of directors comprises Hilde Tonne (chair), Bjørn Erik Næss, Bård Vegard Solhjell, Bente Sollid Storehaug, and Mari Tjømøe, representing the shareholders, and Arvid Amundsen, Per Orfjell, and Per Luneborg, representing the employees.

- I look forward to start working on establishing Norway`s leading power group. Awaiting Oslo municipality search for a permanent chairman of the board that shall safeguard the balance between Hafslund and E-CO, I have accepted to chair the board for a transitional period, says chairman of the board Hilde Tonne in Hafslund E-CO AS.

At its first meeting, the board appointed Finn Bjørn Ruyter as the Group?s CEO. The subsidiaries will retain their respective financing arrangements and liabilities, such that the merger will not result in any change in the key financial figures for Hafslund AS and E-CO Energi Holding AS.

The energy sector is currently undergoing major changes. Increasingly integrated markets and strong growth in ever cheaper wind and solar power are affecting the energy system and prices. The regularity of hydropower is becoming more and more important in an increasingly integrated European electricity market, with a growing proportion of non-regulable renewable generating assets. Norway?s renewable power production is playing an important role in the decarbonisation of Europe?s energy sector.

Customer behaviour and participation in the power system is changing. Electrification is rapidly replacing fossil fuels for both heating and transport. With solar energy and batteries both falling in price, households can both generate and store their own energy. At the same time, automation and machine learning create new opportunities to mobilise resources which are currently unexploited.

"We expect major changes in the power sector as we move forward. Our in-depth understanding of the electrical value chain will enable us to make the right strategic choices, and we aim to play an important role in the ongoing electrification of society," says Hafslund E-CO's CEO Finn Bjørn Ruyter.

For more information see hafslunde-co.no.

Contacts:

Tore Olaf Rimmereid, CFO, +47 909 92 515

Per-Arne Torbjørnsdal, Vice President, strategy and communication, +47 916 08 196