ANNUAL REPORT 2011 - DONG Energy

As a condition for approval of its participation in gas and oil
exploration and production on the Norwegian, UK, Greenland
and Faroese continental shelves, DONG Energy A/S has provided
a guarantee under which it assumes primary liability as
normally required by the local authorities. The guarantee covers
obligations and liability incurred or assumed by the DONG
E&P Group in connection with its exploration and production
activities. The guarantee has no maximum limit and the DONG
E&P Group is jointly and severally liable with the other partners
for obligations and liability.
Through subsidiaries and jointly controlled assets and entities,
DONG Energy participates in gas and oil exploration and production,
construction and operation of wind farms, geothermal
plants and natural gas facilities. The Group has provided guarantees,
and guarantees under which the Group assumes primary
liability, in respect of the construction and operation of
facilities, and leases, decommissioning obligations, purchase
and sales contracts, etc.
Joint and several liability
DONG Energy participates in a number of jointly controlled
assets and entities, including renewable energy projects and
gas and oil exploration and production licences. The Group
is jointly and severally liable with the other joint venturers for
obligations and liability under agreements concluded.
DONG Energy Power A/S is liable as a partner for fi nancial
losses at certain CHP plants.
litigation
DONG Energy is a party to actions relating to the competition
authorities’ claim that Elsam A/S and Elsam Kraft A/S charged
excessive prices in the Danish wholesale electricity market in
some periods. Following a merger in 2008, Elsam Kraft A/S is
part of DONG Energy Power A/S.
The Competition Appeals Tribunal has concluded that Elsam
A/S and Elsam Kraft A/S abused their dominant positions in
the wholesale electricity market in Western Denmark to some
extent in the periods 1 July 2003 to 31 December 2004 and 1
January 2005 to 30 June 2006 by charging excessive prices.
DONG Energy disputes the rulings and has appealed them to
the Copenhagen Maritime and Commercial Court.
A group of power consumers has fi led a claim with the
Copenhagen Maritime and Commercial Court for compensation
of up to DKK 4.4 billion with addition of interest in connection
with the above actions relating to excessive prices in
Western Denmark. DONG Energy has recognised a provision
of DKK 298 million, which has been determined on the basis of
the Danish Competition Council’s calculation of the consumers’
losses.
In connection with collaboration agreements entered into by
the Group concerning jointly controlled assets and entities,
etc., various minor litigation cases are pending, the outcome
of which is not expected, either individually or collectively, to
have any signifi cant effect on the Group’s fi nancial position.
The Group is also a party to a number of litigation proceedings
and legal disputes that will not have any signifi cant
effect on the Group’s fi nancial position, either individually or
collectively.
DONG ENERGY DONG ENERGY GROUP ANNUAL REPORT 2011 – COnsOliDatED finanCial statEmEnts
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notes