Newsletter - October 14, 2008
Merger and change of name to DONG Energy Power A/S
A merger between DONG Energy Generation A/S (former Elsam Kraft A/S) and Energi E2 A/S is planned to be realized during the last part of 2008. This merger is the next step in finalizing the merger from 2006 where DONG Energy was founded. Until now the companies have been two separate legal entities owned by DONG Energy A/S.
At the Merger, DONG Energy Generation’s assets and obligations are, as a whole, transferred to Energi E2 as set out in the Danish Companies Act regarding universal succession. DONG Energy will continue as the parent company of the group, including directly and indirectly owning and maintain-ing complete control over Energi E2. Thus, the Merger does not involve shareholders outside the DONG Energy group, and it is therefore only a question of an intercompany reorganization reasoned by the desire to obtain an expedient group structure as part of the general group adaptation in the DONG Energy group.
The transfer of assets and obligations are approved by the Danish Competi-tion Authorities (DCA) and therefore in accordance with the stipulations in the Virtual Power Plant Master Agreement (see “Master Agreement” 9.4).
The available legal documents on the confidential section of www.dongenergyvpp.com will be updated to reflect these changes from the official date of the merger.
Please note that before the merger is realized there is no action to be taken in relation to the VPP.
When the merger is finalized, a newsletter will be sent out describing the actions to be taken and the new contracts will be published on the web page.
The accounting reports of DONG Energy A/S are already made as if DONG Energy Generation and Energi E2 are one entity, i.e. DONG Energy Power A/S. The reports can be found on www.dongenergy.com.
Next auction
The next VPP auction is scheduled to take place on 25 November 2008.
The auction will include two products:
- Quarterly product: 100 MW delivered in Q1-09.
- 12 Months product: 200 MW delivered in YR1-09 (2009).
DONG Energy Power looks forward to see both new and existing bidders at the next auction.
Bid Security published
The Bid Security for the upcoming auction has been published on the confi-dential section of www.dongenergyvpp.com.
Deadlines for upcoming auctions
The application deadline for the upcoming auction is 4 November 2008. A complete overview of the application procedures "Guide for November Auc-tion 2008" is available in the confidential section of the www.dongenergyvpp.com.
Please submit the following material before the application deadline:
Schedule A: Application for qualification to bid
Schedule B: Bid Security Information Form
Schedule C: Power of Attorney
Only required:
- If there are changes to the existing Power of Attorney
- If the existing Power of Attorney expires
Schedule F: Parent Company Guarantee (if relevant)
New bidders are also required to submit:
| Master Agreement |
To DONG Energy Power A/S
|
| Nomination and Delivery Agreement |
To Nord Pool SPOT AS
|
| ETS Agreement (is necessary) And Agreement of addendum to the ETS agreement |
To Nord Pool ASA |
| Confidential information to Trustee (art. 2.9) Balance obligation Agreement (copy) |
To Deloitte |
Mock auction on 18 November 2008
The mock auction is scheduled to take place on 18 November 2008. Prior to the mock auction, each applicant will receive a notification of whether or not the company is approved to take part in the auction.
Indicative energy price
Indicative energy prices for VPPQ1-09 and VPPYR1-09 are published on www.dongenergyvpp.com. Regular updates will be done from every Tues-day from week 44 until a week prior to the auction.
Questions
Questions concerning VPP and the upcoming auction please contact:
Head of Planning, General Manager Lars Blaaberg, phone +45 99 55 29 71
or
Portfolio Management, Lasse Pilsmark +45 99 55 24 59