Energy

Our energy group offers comprehensive and extensive knowledge and experience in petroleum tax law and accounting - two subject areas that are inextricably linked. Our specialists have backgrounds from working in oil companies, the Norwegian tax authorities and the Ministry of Finance.

The energy group offers a range of services within petroleum tax and accounting, including:

• continuous tax and accounting advice
• corporate restructuring and reorganisation
• transaction support
• transfers of licenses and interests on the Norwegian continental shelf
• representation against the tax authorities
• internal pricing (transfer pricing) - nationally, internationally and offshore/onshore
• assistance in complaints and litigation
• courses and seminars - general tailor-made

Responsibility for the delivery of services rests with local authorities, and some municipalities have chosen to organise parts of the business into inter-municipal companies. Private contractors are widely used in assignments associated with investments in plant and equipment, but less so for operational tasks. The sector is characterised by many small players and inefficient operations.

The sector faces major challenges in the years ahead, major reinvestment needs, increased expectations plus the implementation of EU directives will lead to large investment needs, with increased requirements for human and financial resource contributions. This will primarily reinforce the sector's (known) main problem; the availability of expertise in the future. The average age of current employees is high, and the supply of new personnel with relevant training alarming is low.

The water and sewerage sector is structured as a monopoly. In a monopoly market prices must be regulated to prevent providers exploiting consumers. Today prices in the sector are set on a non-profit making basis. Total income from consumers shall not exceed the municipality's total costs, including a defined return on invested capital.

The Department for Regions and Municipalities has initiated a research project to evaluate other ways to regulate the sector in order to make it more efficient. In this regard, a regulation model that resembles that of the electricity grid will be considered.