The Energy Regulation and Markets Review - Stikeman Elliott

Sweden
application processes may be both lengthy and complex in nature and require that
environmental investigations and impact analyses are carried out in order to receive the
necessary approvals. Additionally, in most cases a permit is also needed for the operation
of an energy facility.
The purchase and sale of electricity in Sweden takes place on a deregulated market
with competition between the parties involved.
A high-voltage electrical power line may not, with a few exceptions, be built
(or operated) without a permit – a network concession – covering either a specific line
or an area. A network concession may be granted provided that the line is considered
appropriate from a general point of view and that it meets certain other requirements,
including specific environmental qualifications. Network concessions will be granted
only to legal persons that are suitable to conduct network operations. As a rule, a network
concession for interconnectors may only be granted to a ‘stamnätsföretag’, a legal entity
that holds network concessions for the national grid (currently only Svenska Kraftnät) or
to legal entities that are controlled by a stamnätsföretag.
The rule regarding network concessions for the establishment of a high-voltage
power line also applies (more or less) in the natural gas segment with regards to the
establishment of high-pressure pipelines.
iii Ownership and market access restrictions
Foreign investors can participate on equal terms with Swedish investors on the energy
market. There are, however, some ownership and market access restrictions, for example,
that the establishment of a high-voltage electrical power line or a high-pressure pipeline
requires a network concession (see above).
The implementation of EU’s 3rd Energy Package has also resulted in some new
ownership restrictions in the electricity and natural gas markets (see Section III.i, infra).
iv Transfers of control and assignments
An electric network or a natural gas concession may not be transferred without the
permission of the Inspectorate. Such permission will only be granted to a party considered
suitable to engage in network operations from a public perspective.
Mergers and acquisitions and joint ventures in the energy market may also require
approvals from the Swedish Competition Authority. The thresholds of the energy industry,
regardless of the segment, are the same as those that apply under the Competition Act. 8
A concentration must be notified to the Competition Authority if:
a the combined aggregate turnover in Sweden of all the undertakings concerned
during the preceding financial year exceeds 1 billion kronor; and
b at least two of the undertakings concerned each had a turnover in Sweden during
the preceding financial year exceeding 200 million kronor.
8 SFS 2008:579.
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