Fredrikstad energy, Norgesnett | High electrical energy price ranges: huge deficit at Fredrikstad Energi

The board and administration them selves communicate of the excellent loss in a freshly posted information. The reduction of NOK 41 million applies to the team and is income prior to tax for the 1st 50 percent of 2022.

A few years back, the firm experienced to inquire for money from the municipality of Fredrikstad.

Owned by the municipality

The enterprise is owned by the municipality of Fredrikstad with 51%, while Hafslund retains the remaining shares.

The weak final result is mainly owing to significant electrical energy charges. This is mainly because some of the electrical power is misplaced in the grid on its way to the client. This is common and does not just use to Fredrikstad Energi.

This loss in the internet should be included by Fredrikstad Energi.

Fredrikstad Energi – which does not have its have energy era – as a result has to go to the industry to acquire electrical energy to compensate for the reduction of electrical power. When the price of electrical power is higher and Fredrikstad Energi has to trade the market place, they far too will see that it is highly-priced.

It was a flamable political argument if the municipality have been to go out of business. Hafslund was intrigued in using more than the shares of the municipality.

– To be compensated by the customers

– The enhance in charges deriving from large energy rates ought to be included in excess of time through the web rent from clients, but in the brief phrase it translates into an imbalance amongst revenues and expenses, writes the board of directors.

How weak the figures are depends on the place you go to examine in the accounts. Both pre-tax and submit-tax income details are presented.

The following-tax final result would be a decline of NOK 32.7 million.

– This is NOK 57.8 million less than in the initially 50 percent of 2021, the council says.

It has a pure monopoly

Fredrikstad Energi is in a distinctive monopoly circumstance as it owns the electrical power grid in most of the Fredrikstad district. This usually means that Fredrikstad Energi is the only one capable of carrying the very last section of the electric power residence to shoppers. This component of the team has the Norgesnett manufacturer.

Fredrikstad Energi is also an electric power seller. But listed here the customer can freely decide on amongst a reasonably huge selection of firms featuring the similar product. Internally at Fredrikstad Energi, this part is referred to as Marked.

In the 50 percent-annually report of the board we browse:

“The turnover in the initially 50 % of 2022 was 816.7 MNOK when compared to 535.4 MNOK in the very first 50 percent of 2021. The raise is predominantly because of to the increase in turnover in the industry because of to substantially better energy price ranges. In addition, larger network tariffs have contributed to an enhance in MNOK 50’s transmission profits in Nett. “

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– Not creepy

– The final result is not disturbing, states interim CEO Ronny Berg.

– This is the same phenomenon we had in 2021. When electrical energy rates are higher, the tariffs are way too lower to address the loss of electrical energy we have in the grid and which we are compelled to swap. This will be mitigated about time, but we will have a small-phrase detrimental impact on the accounts. On the other hand, we get a “as well very good” end result afterwards.

He adds that it is truthful to say that Fredrikstad Energi is paying for the clients and that this decreases the outcome.

It finishes in Fredrikstad Energi

A couple several years ago, Berg was employed for the posture of CFO, which is approximately the very same as CFO. Subsequently, he was appointed CEO. But at the conclusion of October he will leave Fredrikstad Energi.

Berg thinks there is purpose to hope for a constructive final result when the calendar year is about and the 2022 expenses are settled.

– In your opinion, there is no disaster?

– No it is not. But we have a quite unique industry for energy. Power is on everyone’s lips right now. Fredrikstad Energi is in the similar situation as the standard client. We do not deliver energy and we do not profit from superior electrical power selling prices. We are no lengthier enthusiastic about the advancement of the normal man and lady of the avenue.

Berg confirms that significant electricity prices are eating up the liquidity of the Fredrikstad Energi team.

– But as of the first half of the 12 months, we still have NOK 400 million of unused leverage reserves, he states. Draft reserves are basically lending prospects.

– Could it be related to request the municipality of Fredrikstad for far more dollars?

– This extensive-term possibility should under no circumstances be ruled out. But we you should not have any concrete strategies to check with the municipality for money, Berg claims.

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