Norway moves to block EU action against energy firms

Date: 31/10/01

By Laurence Frost

NORWAY has stepped in to oppose EU legal action against energy companies accused of conspiring to fix prices on gas exports from the country's offshore territory. Oslo yesterday (30 October) sent a paper to the EU executive urging it to drop its action against 23 firms that had sold gas through Norway's GFU gas board.

The Commission alleges that by setting prices through the board, the firms broke the European Economic Area (EEA) Agreement. But Norway maintains that national resources are outside the EEA's scope, and that EEA disputes should be handled by the secretariat of the European Free Trade Area (EFTA). "It's not within Commission's competence to do this," said a Norwegian energy ministry official. "If there's an issue it's a matter between the Norwegian government and the EFTA surveillance agency."

Oslo's submission is the first clear sign that the new centre-right government formed earlier this month will continue to take a tough line on the GFU probe. Norway had come close to a formal challenge against the EU at a meeting of the EEA's supervisory joint committee on 28 September, but opted for an informal discussion at the last minute.

But Oslo is not ruling out future formal proceedings - which would be the first against the EU within the EEA, a group that extends Union competition and single market rules to Norway, Iceland and Liechtenstein. Norway is coordinating the legal defence of many of the 23 firms, which include oil majors Shell, BP Amoco, TotalFinaElf, Chevron and Exxon Mobil as well as Norweigan state-controlled operators Statoil and Norsk Hydro.

At formal hearings on 11-14 December, the firms will tell the Commission they were compelled by the Norwegian government to set prices through the GFU - a claim backed by Oslo. The EU executive wants long-term gas supply contracts drawn up under the old GFU to be renegotiated under the new liberalised price regime.

Norway has stepped in to oppose EU legal action against energy companies accused of conspiring to fix prices on gas exports from the country's offshore territory, 30 October 2001.