There are around 500 distribution companies in the Nordic and Baltic countries.
A distributor ensures that power reaches the end-user. Power is transmitted from the power plant through the central grid and the transmission net to the end-user.
There are a great many distribution regulations imposed by Norwegian authorities. Nord Pool is a Norwegian registered company and therefore operates under Norwegian laws and authorities. The authorities define levels of maximum profit which ensures that stable and reasonable prices are maintained. This is very important as every distributor has a monopoly over a certain geographical area. Nord Pool’s income is also regulated by authorities.
Every distributor is granted a permit giving him the exclusive right and obligation to build a distribution network in a certain geographical area. A distributor might also have the role of a supplier, but is obliged to distribute electrical energy from any other supplier under the same terms.