Competition: ESA accepts Norway’s commitments in North Sea Link Interconnector investigation

The EFTA Surveillance Authority (ESA) has accepted voluntary commitments offered by Norway to address ESA's preliminary competition concerns regarding the North Sea Link (NSL) electricity interconnector.

ESA received a complaint in July 2022 alleging that Norway breached EEA competition rules by granting the Nord Pool Group, the incumbent, an exclusive right to organise the day-ahead electricity auction including for capacity on the NSL interconnector. The NSL is a subsea cable connecting the electricity markets of the United Kingdom and South-Western Norway.

In its Letter of Preliminary Objections (LPO) issued in March 2024, ESA made the preliminary conclusion that this exclusivity could create unequal opportunities for market participants and strengthening Nord Pool's dominant position, thereby producing anti-competitive effects contrary to Article 59(1), read in conjunction with Article 54 of the EEA Agreement.

Although Norway does not agree with ESA's assessment, on 14 November 2025 it offered commitments to address these concerns. Norway will implement a new trading solution that allows competition among power exchanges on the Norwegian side of the NSL interconnector. Statnett, the Norwegian transmission system operator and co-owner of the NSL, together with the UK's National Grid plc, will put the solution in place by May 2026. Norway will provide ESA with detailed progress reports at agreed milestones, including documentation on implementation and authorisations of power exchanges.

ESA considers the commitments, combined with its monitoring powers, sufficient to resolve the concerns identified in the LPO. A market test confirmed that the commitments adequately address ESA's preliminary findings. ESA has therefore closed its investigation.

Commenting on the decision, Árni Páll Árnason, ESA's Vice-President responsible for competition, said: "Today's decision shows that Article 59 EEA is an effective tool to address potential anti-competitive consequences of a state measure. ESA welcomes Norway's willingness to offer remedies addressing our preliminary concerns."

A non-confidential version of the decision will be published on ESA's website as soon as possible.

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