Trends and developments in the Norwegian power network sector

Norway has been a front-runner in deregulating of the power supply industry, but we have to realise that more dominant players now are catching up with us, and that our possibilities to shape the future models are more and more limited. While liberalisation is widely accepted in Norwegian society, it is not likely to see a development where utilities are privatised within the first five to ten years. This means that the Norwegian power supply industry, in particular the power networks, will remain mainly publicly owned for some time to come. The degree of change and innovation among the Norwegian network companies is decided by the public owners\´ ability to see their roles. At present they are dominantly driven by traditional political objectives. A change is taking place, but the process is slow. The ongoing restructuring process seems to result in four to six regional network companies, that will effectuate synergy potentials and improve performance, but without reshaping the business. There will still be many small local companies, all being operated more or less as before, but probably decreasingly profitable. In the coming years the dominant players will continue their vertical orientation, seeking growth in related business sectors. The basic concept will still be a publicly owned infrastructure provider, but with an increasing range of products and services to offer. The business will be reshaped through splitting up activities and outsourcing, but traditional core activities will still be kept within the "power utility sphere"