KP allows the fusion of two generators

The Competition Council (KP) authorized the electricity producer AS "Enefit Green" to acquire all shares of AS Nelja Energia and thus combine the two companies, the portal "Delfi" having been known to KP.

According to competitive observers, the merger will not reduce competition in the affected market. Both companies are registered in Estonia and, indirectly, in Latvia, they own and operate biombad cogeneration plants producing heat and electricity. Enefit Green is owned by AS Eesti Energia, an Estonian public energy company. Valka owns SIA Enefit Power and Heat Valka. In turn, "Nelja Energia" owns a subsidiary of Technological Solutions Ltd in Brocēni District.

The activities of the two companies in Latvia overlap only in the market for the production and wholesale of electricity. On the other hand, the heat supply areas of biombad cogeneration plants do not overlap, which explains why companies operate in different markets for heat production and supply. During the investigation, the KP concluded that the combined market share of the parties to the concentration in the electricity and wholesale market is low, so that the change of ownership of Nelja Energia does not lead to any significant changes in the relevant market. the electricity market and wholesale market structure will not change significantly in Latvia, the competition will not be significantly reduced and the dominant position of a market player will not develop and will not strengthen in the affected market. Therefore, the merger transaction is allowed

In order to prevent a significant reduction of competition resulting from mergers, a merger transaction meeting the criteria set out in the Competition Act requires a license from the Customs Union. Thus, the KP provides for state control over the concentration of markets, so that no structural change will result in long-term suffering for consumers because they have choices restricted or purchase goods and services at non-competitive prices.