State advised to exit power market

A consulting group has recommended that the Norwegian state sell all or part of Statkraft, the state-owned electric power giant. A report by the Econ Center for Economic Analysis said privatisation was the simplest way for the state to untangle itself from conflicting roles in the electric power market. In addition to owning Statkraft, which is the country's largest power producer, the state owns Statnett, which controls the central power line grid. The state also regulates the power production market. Private and municipal power producers have complained that the state can provide Statkraft with unwarranted advantages. "The problem is not that the state owns Statnett or Statkraft, but that it owns both of them, and that the ownership is placed in the same department," said Econ spokesman Jan Bråten.