NORWAY Law and Practice Contributed by: Jøran Sandvik, Aksel Tannum and Ida Mattsson Sperre, Advokatfirmaet Haavind AS
The Waterfall Rights Act (Vannfallrettighetsloven)
physical delivery of electricity, including, but not limited to, information about orders and transactions taking place on that market- place. Violations of the Energy Act and NEM Regula- tion may also lead to criminal liability and can be reported to the prosecuting authorities. The NVE-RME may also impose an infringement fee on anyone who intentionally or negligently vio- lates some of the rules in the NEM Regulation. The financial power market is monitored by the Financial Supervisory Authority of Norway ( Finanstilsynet ), which ensures compliance with financial market regulations. This includes EU financial market regulations, such as the Mar- kets in Financial Instruments Directive (MiFID) II and the Market Abuse Regulation (MAR). The Financial Supervisory Authority’s supervisory powers are similar to those of NVE-RME, allow- ing it to effectively monitor financial activities. Additionally, the Norwegian Competition Author- ity has an overarching responsibility to ensure effective competition, including in the power market, and has a broad range of powers to enforce the Competition Act. Meanwhile, the Consumer Authority is responsible for regulat- ing aspects related to the sale and marketing of energy to consumers. In addition, private law regulations prohibiting market manipulation and insider trading apply to participants in the mar- ketplaces for power trading.
The developer must have the necessary rights to the waterfalls used in energy production. For entities others than the state, a licence is required for the acquisition of such rights. The Act does not apply to small-scale hydropower. Licences under the Waterfall Rights Act can only be granted to public entities. Public enti- ties cover Norwegian municipal, county or state corporations, and companies in which such corporations hold at least two-thirds of both the capital and the voting rights, provided that such companies are clearly publicly owned. Private companies may possess proprietary rights in such companies (up to one-third of the shares). Leases of hydropower plants subject to licens- ing under the Waterfall Rights Act are regulated in the more detailed Regulations on the Lease of Hydropower Plants Act. The regulations lay down certain requirements for the content of the agreements. Agreements must be approved by the Ministry of Energy. The Water Resources Act (Vannressursloven) The purpose of the Water Resources Act is to ensure socially responsible use and manage- ment of watercourses and groundwater. Small- scale hydropower plants, not covered by the Watercourse Regulation Act, may need a licence under the Water Resources Act. There are no ownership restrictions. The Watercourse Regulation Act (Vassdragsreguleringsloven) When a regulation or transfer of water increases the quantity of natural horsepower in one or more waterfalls affected by 500 natural horsepower or more, or in the river system as a whole by 3,000 natural horsepower or more, or if the regulation
3. Generation Facilities 3.1 Constructing and Operating Generation Facilities
The principal laws that govern the construction and operation of generation facilities are as fol- lows.
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