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The Competition Council (KP) authorized Fortum Latvia to take control of SIA BK Enerģija, SIA Energy & Communication and Sprino SIA. The license is given because the merger will not significantly reduce competition in the relevant market, informs CP.
Fortum Latvia Ltd., BK Enerģija Ltd. and its subcontractor Energy & Communication Ltd produce energy in the cogeneration process, simultaneously producing heat and energy. SIA "BK Enerģija" and SIA "Sprino" also produce heat energy in chip boilers.
According to the information provided in the merger report, the activities of the mergers overlap in the production and supply of thermal energy. In badessing the market for thermal power generation and supply, the KP estimated that the merger would have an impact on the market for heat generation and supply. District heating network of Daugavpils. "Fortum Latvia", which operates in Jelgava, does not overlap BK Enerģija Ltd, LLC "Energy & Communication" and "Sprino" Ltd.
However, the three companies that previously competed to provide heat to NO "Daugavpils Heat Grid (DST) operating areas in Daugavpils
DST, which produces and supplies heat to the end consumers of the grid District of Daugavpils, is in competition with the merger, occupying more than 40% of the common market.On the market, major heat suppliers such as SIA Cefus and SIA Latneftegaz, SIA Mamas D, which provide DST, indicate KP
The merging parties and their competitors provide heat to the district heating operator DST in accordance with the market share of the merger after the merger will be lower than the market share of the merging parties , which represents more than 30%, was entered into by the supervisor of the competition.
the final energy tariff for consumers can not be affected because it is approved by the Commission Utilities section, when badessing economically justified costs related to the provision of the specified service. In badyzing the information provided by the companies and available to KP, the KP concluded that the merger would not lead to a strengthening of the dominant position of the merging parties or a significant reduction of competition in the production of electricity. and the wholesale market under the Compulsory Purchase and Generation and Heat Supply Market in the Daugavpils District Heat System.
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