Update on historical cases

Verdo has had a number of unresolved historical cases for many years, dating back to 2000.

These cases go beyond the regular enquiries that are part of the general supervision of all energy sector companies by the Danish Utility Regulator.

After a concerted effort, we have successfully resolved most of the historical cases, so the business can increasingly focus on its strategic goals.

The cases have been handled in open dialogue with the authorities and with the goal of quick resolution.

In 2022, Verdo accelerated the repayment of amounts that had previously been overcharged. Verdo thus expects to have completed repayments for resolved cases one year ahead of the time frame set by the Danish Utility Regulator.

Verdo is still waiting for the Danish Utility Regulator to process a few outstanding historical cases*. However, most of the cases have been closed. The following cases were decided during 2022:

* Please also refer to note 1 of the financial statements for further information on ongoing cases.

Use of cash pool

In December 2022, the Danish Utility Regulator issued a decision in a case concerning complaints about Verdo’s use of funds in a cash pool for regulated companies. The Danish Utility Regulator upheld that the scheme was legal, and found that funds from Verdo Varme A/S and Verdo Produktion A/S had not been transferred to other companies in the Verdo Group via the cash pool scheme, and that Verdo had not otherwise made funds available to such other companies in violation of section 20(1) of the Danish Heat Supply Act. The case is therefore closed.

Water tariffs

Back in 2015, Verdo Vand A/S acknowledged an error whereby financial costs had been incorrectly counted in the price cap for water tariffs for 2013 and the ensuing years. As agreed with Randers Municipality at the time, repayments to consumers were initiated for the amount that had been overcharged.

In 2022, Randers Municipality sought an extra review of water tariffs dating back to 2000. The review did not identify any further non-conformities, and the case was therefore closed again. The repayments initiated under the 2015 agreement will be completed in 2024.