New savings requirement could create uncertainty for Ørsted's Danish TSO sale

While Ørsted is is the process of trying to sell its Danish power grid assets, the domestic utility regulator has published a proposal concerning potential cost savings for the regulated division. Uncertainty about future income could reduce interest from buyers such as private equity firms, says analyst.

Photo: Ørsted PR

Foreign private equity firms and Danish energy companies are currently queuing to bid for Ørsted's domestic power grid activities – potentially one the largest infrastructure trades to take place this year. However, a proposal regarding new sector regulation could throw a bucket of ice water onto the otherwise red hot sales process.

Monday, the Danish utility regulator published a proposed model for benchmarking all Danish transmission system operators (TSOs), airing an indicative proposal for potentially optimizing Ørsted's TSO subsidiary, Radius, by 34 percent, corresponding to DKK 500 million (EUR 67.03 million) per year.

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