Description of the Measures. Notodden is a municipality in the County of Telemark in South-Eastern Norway. Located where two rivers flow into the lake Heddalsvatnet, the municipality has significant hydropower resources within its borders. In that capacity, the municipality is entitled to receive a certain amount of so-called ‘concession power’ from concessionaires for
(1) Hereinafter referred to as the EEA Agreement.
(2) Hereinafter referred to as the Surveillance and Court Agreement.
(3) These provisions read: ‘The licence shall stipulate that the licensee shall surrender to the counties and municipalities in which the power plant is located up to ten per cent of the increase in water power obtained for each waterfall, calculated according to the rules in Section 11, subsection 1, cf. Section 2, third paragraph. The amount surrendered and its distribution shall be decided by the Ministry concerned on the basis of the county's or municipality's general electric power supply needs. The county or municipality may use the power provided as it sees fit. […]. The price of power [for the municipality] shall be set on the basis of the average cost for a representative sample of hydroelectric power stations throughout the country. Taxes calculated on the profit from power generation in excess of a normal rate of return are not included in the calculation of this cost. Each year the Ministry shall set the price of power supp- lied at the power station's transmission substation. The provisions of the first and third sentences do not apply to licences valid prior to the entry into force of Act No 2 of 10 April 1959’. (Translation by the Norwegian Ministry of Petroleum and Energy).
(4) The ‘individual costs’ of the plant are calculated in accordance with the legal provisions applicable until 1959. Under these provisions, the indi- vidual cost price would be calculated as the plant's production costs including 6 per cent interest on the initial costs, plus a mark-up of 20 per cent, divided by average yearly production in the period 1970-1999. See the so-called KTV-Notat No 53/2001 of 24 August 2001, Event No 455241.
(5) KTV-Notat No 53/2001, cited above.
(6) See Norway's reply to question 4 in the second request for information, Event No 449660.
(7) Annex to Event No 449660. municipality was entitled to buy 30 GWh per year, including 3,9 GWh concession power, from Tinfos AS. The price was set at NOK 0,135/kWh for concession power and the additional volume alike. After 31 March 2006, the municipal...
Description of the Measures