Examining Price Adjustment Claims Under a Long-Term District Heating Agreement

Senior Managing Director Tomas Haug and Director Niko Czaplicki provided expert economic analysis in an SCC arbitration concerning the pricing of a long-term district heating cooperation agreement between two Scandinavian utility companies.

NERA was engaged to assess the opposing party’s financial modeling and quantify the economic implications of disputed pricing adjustments under a long-term district heating cooperation agreement. Our work included evaluating the relationship between contractual pricing and underlying production costs, reviewing counterfactual scenarios and alternative investment decisions, assessing production optimization across interconnected district heating networks, analyzing the distribution of benefits arising from cooperation, and examining the robustness of the opposing party’s optimization models and pricing methodologies.

Our experts prepared expert evidence and supporting quantitative analyses, drawing on NERA’s expertise in energy economics, international arbitration, and the economic analysis of long-term infrastructure agreements.