Equinor and Danske fined €12 million in France, challenge regulatory decision

The French Energy Regulatory Commission (CRE) recently imposed a substantial financial penalty on Equinor and Danske Commodities for alleged market manipulation during gas transport auctions. The fine amounts to €12 million, with Danske Commodities facing an €8 million penalty and Equinor €4 million. This action stems from accusations of violating the European regulation on wholesale energy market integrity and transparency (REMIT). The companies were accused of placing extreme bids during the auctions, with Danske Commodities asking for the maximum capacity and Equinor requesting the minimum, leading to congestion at the interconnection point and triggering a tariff mechanism that favored Danske Commodities.

In response to the sanctions, Equinor’s Executive Vice President for Marketing, Irene Rummelhoff, expressed the company’s disagreement with the allegations of collusion. Equinor has decided to challenge the decision by appealing to the French Council of State, the highest administrative court in France. The appeal is aimed at contesting the conclusions of the Dispute Settlement and Sanctions Committee (CoRDiS) regarding the alleged coordinated actions between Equinor and Danske Commodities.

The CRE’s decision to penalize Equinor and Danske Commodities reflects a broader trend of increased scrutiny by European regulatory authorities over market practices. The penalties are part of efforts to prevent manipulations that could distort pricing and impact competition in the natural gas sector. With geopolitical tensions and price volatility already affecting the industry, further investigations and regulatory actions may be on the horizon. Market players are closely following the developments surrounding Equinor’s appeal, as it could have implications for auction rules and cross-border capacity management in the future.