Note 13 Related parties
As at 31 December 2013, Statnett SF was wholly-owned by the Norwegian State through the Ministry of Petroleum and Energy (MPE). Statnett has the following relations with MPE both as owner and regulatory authority:
The Norwegian parliament (Storting) is the legislative authority that passes legislation based on bills put forward by the government. Regulations are adopted by the King in Council. The MPE administers its areas of responsibilities and delegates the administration of the greater part of the Energy Act to the NVE. Pursuant to the Norwegian Public Administration Act, any administrative decision made by the NVE can be appealed to the MPE as the superior authority.
Other related parties:
The subsidiaries are all wholly-owned by Statnett SF, though so that Statnett owns 100 per cent of the shares in NorGer AS and 90 per cent of the shares in NorGer KS. In addition, NorGer AS owns 10 per cent of the shares in NorGer KS. This entails that Statnett SF, including indirect ownership, also controls 100 per cent of the shares in NorGer KS.
Statnett SF has an ownership interest in Nord Pool Spot AS of 28.2 per cent. The ownership interest was reduced from 28,8 per cent following a private placement in August 2013. Statnett SF has an ownership in eSett OY of 33,3 per cent, corporated in November 2013.
Related party transaction
Statnett SF and its subsidiaries have entered into loan agreements and agreements relating to the purchase and sale of services. All transactions are made as part of the normal commercial operations and at current market prices. The most important transactions were:
Statnett Forsikring AS is licensed to provide cover for risks associated with companies in the Statnett Group, and operates both as a direct personal insurance company and a non-life insurance company. The company is also a reinsurer of Statnett's risks covered by other insurers.
Statnett Transport AS operates a heavy transport business on land and sea and supplies transport services to Statnett SF, including preparedness services relating to cables. These services are valued by an external party.
Statnett SF purchases transmission losses on Nord Pool Spot AS on a daily basis. The purchase and sale of energy is settled at the power exchange's market prices.
Statnett SF performs administrative services for its subsidiaries. Agreements have been entered into which specify these services, and they are priced at market terms.
In 2013, Statnett SF received dividends totalling NOK 3,6 million from subsidiaries and associates.
Statnett SF has purched Nydalen Allè 33 from Nydalshøyden Bygg C AS. The purchase price is valued by an external part.
Joint venture parties
TenneT TSO BV and Statnett SF have constructed a subsea cable to transport energy between Norway and the Netherlands, known as the NorNed cable. Each party owns its physical half of the cable, with Statnett owning the northern part and TenneT the southern part. The NorNed cable became operational in May 2008. Costs and revenues from the operation of the NorNed cable are shared equally between TenneT and Statnett.
Statnett SF owns Skagerrak cables 1-3 whereas the Danish system operator Energinet.dk holds a long-term lease agreement for half of the cable capacity. Operating costs and revenues related to the operation of the cable are shared equally between Energinet.dk and Statnett. Energinet.dk and Statnett have also been granted a licence to install another cable for transmission of energy between Norway and Denmark, called Skagerrak 4. Each party will own its physical half of the cable, with Statnett owning the northern part and Energinet the southern part. The cable is currently being constructed and is scheduled to come online towards the end of 2014.
Statnett signed in autumn 2012 a cooperation agreement with the German companies TenneT and KfW in order to realize an HVDC interconnector between Norway (Tonstad) and Germany ( Wilster). The project's name is NordLink. NordLink has a transmission capacity of 1400 MW. The interconnector consists of 53 km overhead line on the Norwegian side, a 514 km submarine cable and a 55 km land cable on the German side. The ownership is shared, where Statnett owns the Northern part and TenneT and KfW owns the Southern part through a jointly owned German company. Costs and trading revenue are shared equally between Germany and Norway. In 2013, NordLink applied the Norwegian authorities for a trade license. The interconnector is planned to come into operation end of 2018.
National Grid NSN Link Ltd (NLL) and Statnett plan to realize an HVDC interconnector between Kvilldal in Norway and Blyth in North-East England, referred to as NSN. The transmission capacity will be 1400 MW. Each party will hold 50% of the interconnector, with Statnett as the owner of the Eastern part and NLL the Western part. All costs and trading revenues shall be shared equally between the partners. NSN holds a technical license in Norway and a trade license in England. In 2013, NSN applied the Norwegian authorities for a trade license and the British authorities for the technical license. NSN is planned to come into operation in 2020.
Statnett SF inter-company accounts
Interest rates on long-term borrowing and lending have been agreed at six months' NIBOR with a mark-up in the interval 0,7% - 1.75%