Based on a complaint made by Kuopion Energia Ltd, the Finnish Competition Authority (From 1 January 2013 the Finnish Competition and Consumer Authority) investigated whether Vapo Ltd’s pricing of energy peat is in accordance with the competition law. Kuopion Energia claimed that under the delivery period of 2009–2010 Vapo had committed groundless and unreasonable price increases of energy peat and thus abused its dominant market position.
Based on its investigations the Finnish Competition Authority came to the conclusion that Vapo had not committed unreasonable pricing, prohibited by the competition provisions, in the sale of energy peat. The authority assessed Vapo’s price increases and the level of its pricing by analyzing especially the profitability of its peat business. According to the authority it is common knowledge that the summers during the past years had been rainy and that the total production targets had not been reached. Furthermore the current preconditions for environmental permit proceedings and the length thereof may have led to need of additional investments and costs and thus caused pressure to increase prices. The Finnish Competition Authority found that based on the circumstances shown inthe matter with relation to the issue there was no reason to question the fact that Vapo’s price increases were based on actual increase in the production costs of energy peat. The authority withdrew the issue by its decision on 16 November 2012.
During the Finnish Competition Authority’s investigation Vapo was assisted by attorney-at-law, partner Jouni Alanen and attorney-at-law Maarika Joutsimo.
