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The Danish Competition Council Abolishes a Commitment from DONG Energy

On 28 May 2014 the Danish Competition Council abolished a commitment from a merger between Elsam (now DONG Energy) and Nesa in 2004. The commitment obliged DONG Energy to auction 600 MW electricity generation capacity through Virtual Power Plants. The commitment was required to recover competition in the post-merger wholesale market for electricity in Western Denmark. During the past decade, the market conditions have improved significantly and there is now a strong competitive pressure on DONG Energy. Accordingly, the commitment is no longer necessary for competition in the wholesale market for electricity in Western Denmark.