The Company

Fjordkraft at a Glance

Fjordkraft at a glance

Fjordkraft supplies electricity to more than 2.1 million people throughout Norway, Sweden and Finland – either at home or at work.

Fjordkraft Holding ASA uses the following segments in its financial reporting:

  • Consumer
  • Business
  • New Growth Initiatives (NGI), which consists of its mobile services business, the alliance segment, the Extended Alliance, and its electricity sales business in Switch Nordic Green, Sweden and Finland.

 

Consumer market, Norway

The Group has several brands, Fjordkraft, TrøndelagKraft, Gudbrandsdal Energi and Eidsiva

Marked (2020), and in total the Group accounted for a total of 755,304 electricity deliveries at the

end of 2020 in the Norwegian consumer segment. Its overall market share in the consumer segment

in Norway is approximately 27 per cent.

 

Business market, Norway

Fjordkraft is a leading supplier to the business market and accounted for a total of 106,977

deliveries in the Norwegian business market. Products range from straightforward electricity

contracts to advanced power portfolio management. Customers range from energy-intensive

industrial manufacturers and large corporations with facilities all over the country to small local

businesses. Digital energy reporting and analysis tools help businesses achieve efficient energy use.

Fjordkraft also offers various power purchase agreements and energy and environmental advice.

 

NGI – New Growth Initiatives

Mobile

In April 2017, Fjordkraft became a mobile service provider. Fjordkraft offers its customers low-cost mobile services via Telenor’s network. The Group had 132,395 mobile subscribers at the end of Fjordkraft is the largest mobile service provider in Norway without its own telecommunications network.

Extended Alliance

Fjordkraft delivers billing and payment services for electricity and broadband to 13 companies via its Moment platform. The platform was developed by Fjordkraft and is operated and upgraded by its jointly owned software company, Metzum AS. A total of 56,010 electricity deliveries were being billed via Moment at the end of 2020.

30 alliance partners

The alliance concept is Fjordkraft’s collaboration model for power producers and electricity retailers in rural areas. Fjordkraft provides services related to power trading and market support to 30 electricity companies across Norway. These are electricity retailers, power grid companies and power producers. The alliance concept also provides the company with good insights into the conditions and situations for a wide range of different players and allows us to present a comprehensive picture in our communication with industry associations and the government.

 

Sweden and Finland

The Fjordkraft Group has a subsidiary called Switch Nordic Green AB. The company sells renewable energy and electricity contracts with guarantees of origin (GoOs) in the consumer and business markets under the brand name Nordic Green Energy. At the end of the year, Switch Nordic Green had a combined total of 164,293 electricity deliveries in Sweden and Finland.

 

Acquisitions

  • On 1 July 2019, Fjordkraft acquired 100 per cent of the shares in the end-user company Vesterålskraft Strøm AS.
  • In February 2018, an agreement was signed to acquire the shares in TrønderEnergi Marked AS, an electricity retailer in the Trøndelag region.
  • In August 2018, Fjordkraft completed another transaction with the TrønderEnergi Group, this time acquiring all of the shares in Oppdal Everk Kraftomsetning AS.
  • In October 2018, the company completed a transaction with BKK AS to take over the customer portfolio of Etne Elektrisitetslag.
  • In September 2020, Fjordkraft completed the acquisition of Innlandskraft AS. Innlandskraft AS comprised the end-user companies Gudbrandsdal Energi AS and Eidsiva Marked AS.
  • In November 2020, Fjordkraft acquired 100 per cent of the shares in the Swedish end-user company Switch  Nordic Green AB and its branch in Finland, which trade under the brand name Nordic Green Energy.

 

Fjordkraft subsidiaries

  • Fjordkraft owns 100 per cent of the shares in the electricity retailer TrøndelagKraft AS, which is based in Trondheim.
  • The Group owns 100 per cent of the shares in the electricity retailer Gudbrandsdal Energi AS, which is based in Vinstra.
  • AllRate AS was established in January 2020. Fjordkraft owns 100 per cent of the company’s shares. Fjordkraft has been investing in and developing the Fjordkraft platform since 2012. AllRate delivers rating and billing services across the value chain to end-user companies and grid companies in Norway. The company also aims to win customers in Northern Europe.

 

Joint ventures

Fjordkraft’s in-house billing and management system, the Fjordkraft platform, has been upgraded to sell billing and payment services to other alliance partners. In November 2019, Fjordkraft decided to invest in the technology software company Metzum AS through a joint venture with Rieber & Søn AS. The transaction was completed in 2020. Metzum AS now has a Swedish branch and 20 employees.

 

Ownership structure

Fjordkraft was founded in 2001, following the merger of BKK’s and Skagerak Energi’s end-user customer portfolios. Through the IPO of Fjordkraft in 2018, both parties reduced their holdings, and during 2020 both BKK and Skagerak Energi reduced their holdings. Skagerak Energi sold all their remaining shares in May 2020, while BKK sold all their remaining shares in January 2021. Through the acquisition of Innlandskraft in 2020, Gudbrandsdal Energi Holding became a significant owner, holding about 6.7% of the total shares outstanding as per year-end 2020. The Government Pension Fund Norway was the largest shareholder as per year-end 2020, holding 9.6% of outstanding shares.

The top three countries by shareholdings are Norway (51%), USA (17%) and GBR (11%).

 

History

Fjordkraft was founded on 1 April 2001 with the ambition of becoming a leading company in the sale of electricity to the end-user market. Since the outset, the company has striven to increase national competition in the end-user market, introduce forward-looking, customer-friendly solutions, and ensure a level playing field for all the players in the industry. The company was founded as a result of a merger between the power trading operations of BKK Kraftsalg AS and Skagerak Energi AS. The name Fjordkraft was adopted on 1 June 2001.

 

Klimanjaro and www.klimahub.no

At the UN climate conference in Katowice in 2018, Fjordkraft’s “Klimanjaro” climate initiative was chosen as one of the winners of the UN’s Momentum for Change climate action award for Fjordkraft was the first Norwegian company to win this award. Klimanjaro won the award in the Climate Neutral Now category. In Klimanjaro, the company uses its purchasing power and requires all of its suppliers to become climate neutral if they wish to supply goods and services to Fjordkraft. The reduction in emissions Fjordkraft achieves via its suppliers is 100 times greater than the company’s own emissions. Suppliers must produce climate accounts, take action and offset their residual emissions. In January 2020 Fjordkraft launched the Klimahub.no web portal. Klimahub.no is a portal where users can check Norwegian companies’ climate footprints, produce corporate climate accounts and invite partners to help create a climate neutral value chain. The aim is to develop the portal further and expand the portal’s usage and scope in 2021 through formalising a partnership and joint ownership with external partners.