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					Note 2: Major individual transactions
BKK has not carried out any major individual transactions in 2007.
Note 3: Accounting estimates

Estimates and assumptions
The most important assumptions about what the future holds and other important sources of
uncertainty in estimates on the balance sheet date which entail a significant risk of materially
changing the calculated values of assets and commitments in the coming financial year are
discussed below.

Fair value of financial instruments
The fair value of energy contracts is partly based on assumptions that are not fully observable in
the market. This applies in particular to the valuation of long-term power contracts. In such cases,
the management has based its assessment on the available information in the market and on its
best judgement. More detailed assumptions used in the valuation of such contracts are described
in note 20.

Write-downs
Substantial investments have been made in tangible fixed assets, intangible assets, associated
companies and joint ventures. These fixed assets are tested for write-downs when there are
indications of a possible fall in value. Such indications may include changes in market prices,
agreement structures, negative events or other operating conditions. When calculating the
recoverable amount, a number of estimates must be made relating to future cash flows in which
price movements and production volume are the most important.

Deferred tax asset
Deferred tax assets relating to a negative ground rent income carryforward have been capitalised.
A deferred tax asset is capitalised whenever negative ground rent income is expected to be
utilised within a period of ten years. The correct time when negative ground rent income can be
carried forward is dependent on assumptions about future income, and is particularly dependent
on expectations about future electricity prices. The management has applied its best judgment
when evaluating future electricity prices and other assumptions that govern future ground rent
income.

Pensions
The calculation of the pension commitment entails the use of discretionary judgment and
estimates for a number of parameters. For a more detailed description of the assumptions used
see note 9. The note also describes how sensitive the calculations are in relation to the most
important assumptions.

Concessionary power
Concessionary power which is settled financially is not considered to be a derivative pursuant to
IAS 29, but it is treated as concessionary power with physical delivery. The difference between
market value and concessionary power prices are therefore not recognised in the accounts.

Accountants in Norway disagree about the extent to which repurchasable concessionary power
shall be treated as a derivative under IAS 39, or as concessionary power with physical delivery.
Until this question has been clarified, BKK has decided to treat the agreements as concessionary
power with a physical settlement, and the agreements will not therefore be entered as
commitments in the balance sheet. The Financial Supervisory Authority of Norway is currently
considering the accounting practice.

The calculated fair value at 31 Dec. 2007 of concessionary power which is settled financially under
IAS 39, is NOK - 102,019,070. The corresponding figure at 31 Dec. 2006 was NOK - 94, 499,259.
Note 4: Companies included in the consolidated accounts

The following companies have been included in the consolidated accounts:

Company               Registered office    Country       Holding     Share of votes

BKK AS                Bergen               Norway        100.00%           100.00%
BKK Produksjon AS     Bergen               Norway        100.00%           100.00%
BKK Nett AS           Bergen               Norway        100.00%           100.00%
BKK Varme AS          Bergen               Norway        51.00%            51.00%
BKK Rådgiving AS      Bergen               Norway        100.00%           100.00%
BKK Marked AS         Bergen               Norway        100.00%           100.00%
BKK Kundeservice AS   Bergen               Norway        100.00%           100.00%
Vestnorsk Enøk AS     Bergen               Norway        90.08%            90.08%

The holding in Vestnorsk Enøk AS was increased from 82.36% to 90.08% in 2007.
Note 5a: Segment information

The group's activities are divided into the following business segments:

1. 'Produksjon' covers all activity in BKK Produksjon AS, i.e. all energy
production and energy trading apart from district heating, and the sale of
services by the contractor division in the production company.

2. 'Network' covers all activity in BKK Nett AS, i.e. the monopoly business
relating to the transmission and distribution of electricity and the sale of
core expertise.

3. 'End user' covers sales of electricity to end users.

4. 'Telecommunications' covers the group's telecommunication activities
including cable TV.

5. 'District heating' covers the distribution and sale of district heating in
the group, and also the group's share of the production of heat by
associated companies.

6. 'Other' covers various consultancy services, customer services, house
alarm services etc. and joint metering of electricity.

7. 'Corporate functions' cover corporate management, joint production of
services, property services and joint financial functions, including hedging
of interest rates and foreign currency.

The share of profits in associated companies is assigned to the business
segments as specified above.
Note 5b: Segment table



                                                 Group    Production   Network        End         Telecom.      District   Other      Group        Elimi-
Amounts in NOK million                                                                user                      heating               func.        nations
Segment profit/loss 2007

External operating revenues                       3,818        1,961      1,395         -             247             78     115          23          -
Internal operating revenues                                       15         69                        25             0       29         114          -253
Gross operating revenues                          3,818        1,976      1,463         -             272             78     144         136          -253

Purchase of goods, transmission revenues and
energy                                             -639          -94      -373          -            -101            -29        -75           -1        34
Unrealised changes in value, energy contracts      -143         -143                                                                                     0
Net operating revenues                            3,036        1,739      1,091         -             172             49        69       135          -219

Wages and other payroll expenses                   -474          -76      -229          -             -43             -2        -45     -104            26
Depreciation and write-downs                       -511         -186      -231          -             -54            -16         -3      -22          -
Property tax and licence fees                      -168         -137       -28          -              -1             -2    -             -1          -
Other operating expenses                           -327         -102      -217          -             -70             -8        -25      -98           193
Operating expenses                               -1,481         -501      -705          -            -169            -28        -73     -224           219

Operating profit/loss                             1,556        1,238       386          -                  3          22         -4      -89                0

Profit/loss from subsidiaries/ass. companies        185           97            46          39             -4          4         -4           5             2
Other financial items                              -290         -161           -80      -                 -11        -38          0           1             0
Unrealised changes in value, interest and
currency                                           160                                                                                   160
Net financial items                                 56           -64           -34          39            -15        -34         -4      166                2

Pre-tax profit/loss                               1,611        1,174       352              39            -12        -12         -9       78                2

Tax expense                                        -615         -506       -86          -                   3          0         -5      -20          -
Profit/loss                                         997          668       265              39             -9        -12        -13       57                2

Items included in profit/loss for segments
   Depreciation/write-downs, intangible assets       -3                                                    0                     -2



Segment assets and liabilities at 31 Dec. 2007

Assets                                           13,088       10,098      5,771          61           787          1,333     286       1,329        -6,578
Associated companies                              3,750        2,716        729         170            54             42       3          37          -
Total assets                                     16,838       12,814      6,500         232           841          1,374     290       1,366        -6,578

Total liabilities                                 8,981        5,966      1,866         273           186           109         72       509


Investments in 2007                                474           133       202          -                 61          51         4        23          -
  Of which, maintenance investments                115            43        58                             8                     1         5
  Of which, investments in new capacity            359            90       144          -                 52          51         3        19          -



                                                 Group    Production   Trading       Network        End         Telecom. District     Other        Group         Elimi-
Amounts in NOK million                                                                              user                 heating                   func.        nations
Segment profit/loss 2006

External operating revenues                       3,563        1,771       -           1,351          -             211         85       108            37        -
Internal operating revenues                                       16                      65                         23     -             24           114        -243
Gross operating revenues                          3,563        1,786                   1,417          -             234         86       132           151        -243

Purchase of goods, transmission revenues and
energy                                             -605          -65                    -356                         -95        -33      -84               -1         30
Unrealised changes in value energy contracts        353          353
Net operating revenues                            3,312        2,074       -           1,060          -             138         53        48           150        -213

Wages and other payroll expenses                   -434          -69       -            -228          -              -36         -1      -35           -91            27
Depreciation and write-downs                       -527         -188       -            -244          -              -56        -16        0           -23             0
Property tax and licence fees                      -140         -109       -             -28          -               -1         -2        0            -1        -
Other operating expenses                           -332         -108       -            -237          -              -58         -9      -21           -85         186
Operating expenses                               -1,433         -474       -            -736          -             -151        -28      -56          -199         213

Operating profit/loss                             1,879        1,600       -            324           -              -13        25            -8          -49          0

Profit/loss from subsidiaries/ass. companies        151           96            6         22              20          -4          4           -5            9          2
Other financial items                              -331         -171       -            -109               -4         -8        -34           -2           -4          0
Unrealised change in value, interest and
currency                                           132                                                                                                 132
Net financial items                                -48           -74            6           -87           16         -13        -30           -7       137             3

Pre-tax profit/loss                               1,831        1,526            6       238               16         -25         -5      -15              88           3

Tax expense                                        -663         -594       -            -60                1           6         -1            7          -22     -
Profit                                            1,167          932            6       177               17         -20         -6           -8           66          3

Items included in profit/loss for segments
   Depreciation/write-downs, intangible assets       -1                                                                0                      -1


Segment assets and liabilities at 31 Dec. 2006

Assets                                           12,000       10,403       -           4,920          274           616      755         226         1,239 -6,433
Associated companies                              3,704        2,711       -             722          162            41       41        -               28   -
Total assets                                     15,704       13,114             0     5,642          436           657      796         226         1,267 -6,433

Total liabilities                                 8,044        5,444       -           1,646          243           174         85        50           403        -


Investments in 2006                                379           122       -            139           -               53        54            4             7     -
  Of which, maintenance investments                 50            14                     27                            7                      0             1
  Of which, investments in new capacity            329           108       -            112           -               46        54            3             6     -
Note 6: Operating revenues


Amounts in NOK thousand                                                     2007              2006
Energy sales                                                            2,061,060         1,874,696
Revenues from power transmission                                        1,165,328         1,173,363
Telecommunication revenues                                                247,493           211,571
Sales of contractor services to the energy and industry market            123,567            70,517
Sales and maintenance of road lighting                                     64,361            58,426
Other income                                                              156,387           174,719
Total                                                                  3,818,198         3,563,292


The group's wholesale sales revenues come from the sale of electrical energy from the power plants
in Hordaland and Sogn og Fjordane. This electrical power is sold partly in Norway, partly on the
Nordic power exchange, partly through bilateral contracts with other Nordic players and to a lesser
extent through sales to customers on the Continent.

Power transmission revenues come from sales in BKK Nett AS's licence area in Hordaland and in two
municipalities in Sogn og Fjordane.

The group's telecommunications revenues come from the sale of various types of internet products to
private customers, housing cooperatives and the corporate market, including the public sector. In
addition, it sells cable television products in the housing cooperative market. Such sales are made
mainly to customers in Bergen.
Note 7: Changes in value for derivatives


Derivatives are assessed at fair value with changes in value
recognised in the profit and loss account (IAS 39), cf. also note 20.


Amounts in NOK thousand                                                    2007        2006
Changes in   value, energy contracts
 Net value   of energy contracts at the start of the year                  13,302   -339,964
 Net value   of energy contracts at the end of the year                  -129,629     13,302
 Changes     in value, energy contracts                                 -142,932    353,267


Changes in value, currency contracts
 Net value of currency contracts at the start of the year                -24,841      48,071
 Net value of currency contracts at the end of the year                   34,120     -24,841
 Changes in value, currency contracts                                     58,962     -72,913

Changes in value, interest swap agreements
 Net value of interest contracts at the start of the year               -170,480    -375,364
 Net value of interest contracts at the end of the year                  -69,019    -170,480
 Changes in value, interest contracts                                    101,461     204,885

 Change in value, interest and currency contracts                       160,422     131,972
Note 8: Payroll expenses and number of employees

Amounts in NOK thousand                                      2007             2006
Wages                                                      472,974          441,356
Employer's National Insurance contributions                 64,693           58,577
Pension expenses                                            56,906           31,157
Other benefits                                              15,515           13,050
Capitalised own investments                               -136,217         -110,190
Total                                                     473,871          433,950


Average number of man-years including apprentices:            1011              979


The BKK Group introduced a bonus scheme in 2002. The scheme involves paying a
bonus to all employees except the CEO if a pre-agreed rate of return and
performance requirements are achieved.

In the group accounts as of 31 Dec. 2007, a total provision of NOK 11,436,032 has
been made for bonus payments for 2007 (including holiday pay and National
Insurance contributions).
Note 9: Pension expenses, assets and commitments



The BKK Group implemented Norwegian Accounting Standard IAS 19 from 1 Jan. 2005. A corridor solution is not used and
all estimate variances are amortised immediately and entered directly against equity.

BKK has established its own pension fund which is administered by Gabler & Partners AS. The actuarial calculations are
carried out by an actuary from this company. The pension fund complies with the rules for public pension funds. Under the
secured scheme, full pension benefits (after 30 years) amount to 66% of the pension basis up to 12 times the National
Insurance basic amount (approx. NOK 800,000).

The unsecured schemes consist of the AFP early retirement scheme and pensions paid for from operations. In the note, AFP
and operating pensions are shown together under the heading "unsecured schemes". In BKK, AFP follows the regulations for
the public sector AFP scheme, and BKK joined the joint LO/NHO scheme from the end of 2006. Pensions paid for from
operations include early retirement pensions not included in the AFP scheme and pensions for leading executives. The
calculations are based on standard assumptions relating to the development of mortality and disability as well as other
demographic factors.

The net asset value of the fund at year end was NOK 1,500 million. The board of the pension fund decides the fund's
investment strategy. The assets are managed on the basis of a strategy that involves a high proportion of equity
investment when the fund's buffer capital permits and a correspondingly low proportion when the fund's risk capacity is
small. The strategy aims to maintain a balance between a high probability of achieving the fund's required annual rate of
return of 3% and endeavouring to secure a high long-term rate of return by having a high proportion of equity investments.
The overriding goal for the fund management is to conserve the equity capital, thereafter to achieve as high a return as
possible. At the turn of the year, equity investments accounted for 24.7% of the fund's investments. In addition, the fund
had approx. 17.1% invested in share-index bonds with 2% current yield and high exposure to the stock market. The fund's
actual equity market exposure was approx. 41% at the turn of the year. The fund shall have at least 50% of its assets
invested in interest instruments. The duration of the interest portfolio was approx. 3.4 years. At the end of the year, the
fund had buffer capital of approx. 25.2% of its total net assets, approximately 13.0% of which was unrealised gains.

The buffer capital amounts to 1.4 times the stress test recommended by the Financial Supervisory Authority of Norway.
The risk-weighted equity requirement is NOK 49.7 million, while the fund's equity amounts to NOK 147 million.

The BKK Group's pension scheme covers 1,003 working employees and 646 pensioners, 36 of whom are on early-
retirement pensions.

Sensitivity analyses have been carried out which show the consequences for pension expenses and commitments of
changing the most important parameters. The results are shown in a table under assumptions. The change in expenses
concerns payroll expenses in 2008, while the change in commitment applies at 31 Dec. 2007.




The actuarial calculations have been performed in accordance with the standard from the Norwegian Actuarial Association
and they are based on the following assumptions:

                                                                             2007                    2006
1.Discount rate (earnings/commitments)                               4,50% / 4,60%           5,00% / 4,50%
2. Expected return                                                            5.70%                   6.00%
3. Wage growth                                                                4.25%          3,00% / 4,25%
4. Adjustment of Nat. Insurance basic amount                                  4.25%          3,00% / 4,25%
5. Adjustment of current pensions                                             4.25%          3,00% / 4,25%
6. AFP early retirement                                             40% at age of 62        40% at age of 62
7. Demographic assumptions                                                Gap07IR73                 K63IR73
8. Voluntary retirement                                      before age of 45 - 2.5%   before age of 40 - 3%
                                                                aged 45 - 60 - 0.5%       aged 40 - 50 - 2%
                                                                after age of 60 - 0%    after age of 50 - 0%

The designation Gap07 stands for Gabler Partners' dynamic mortality tables 2007, IR73 refers to disability tables
from 1973.
cont. Note 9: Pension expenses, assets and commitments

                                                            Secured             Unsecured               Total
Amounts in NOK thousand                                     scheme               schemes                2007
A. Pension expenses
Year's pension earnings                                              49,020                  5,801          54,821
Interest expense                                                     56,773                  4,816          61,589
The rate of return on pension assets                                -58,770                      0         -58,770

Amort. of commitments in connection with plan change                                           537             537
Net pension expense                                                   47,023                11,153          58,176
Employer's Nat. Insurance contribution, estimated
change                                                                 2,480                  215            2,695
Employer's National Insurance contribution, the
company's contribution                                                 2,989                                 2,989
Employer's Nat. Insurance contribution, payments from
operations                                                                  0                1,281           1,281
Member's contributions                                                 -8,236                               -8,236
Total pension expense                                                 44,255               12,650          56,906

B. Financial status CB
Minimum commitment                                                1,157,761                 97,291       1,255,052
Value of future wage increases                                      284,220                 24,285         308,505
Pension commitment                                                1,441,981                121,576       1,563,557
Value of pension assets                                          -1,081,710                             -1,081,710
Def. commitment in conn. with plan
change/implementation
Net pension commitments                                             360,271                121,576         481,847
Employer's National Insurance contributions                          50,798                 17,142          67,940
Net pension commitment in the balance sheet after
employer's Nat. Insurance contribution                              411,069             138,719            549,787
Core capital contribution                                           -82,928                   0            -82,928
Net pension commitments after capital contribution                 328,141             138,719            466,859

C. Change in net pension commitment
Net pension commitment OB=CB previous year                          279,108                126,758         405,866
Adjustment of OB net/implementation                                     671                                    671
Employer's Nat. Insurance contribution adjusted
OB/implementation                                                         95                                    95
Adjustment of CB net                                                  97,395                 8,484         105,879
Employer's Nat. Insurance contribution adjusted CB                    13,733                 1,196          14,929
Pension expense                                                       44,255                12,650          56,906
The company's contribution including employer's Nat.
Insurance contribution                                              -24,187                                -24,187
Payments from operations                                                                   -10,370         -10,370
Net pension commitment CB                                           411,069                138,719         549,787
Core capital contribution                                           -82,928                                -82,928
Net pension commitments after capital contribution                  328,141                138,719         466,859


Estimate variances entered directly against equity                  111,893                  9,680         121,573

Note information
Pension earnings for the group CEO and Executive Vice
Presidents                                                             1,440                 1,481           2,920

Sensitivity analysis
                                                                   Change in wages                   Change in discount rate
Amounts in NOK thousand                                       1%                     -1%                1%
Change expenses                                                      27,881             -19,508           -13,806
Change commitment                                                   191,460            -136,327          -273,881

                                                        Adjustment of Nat. Ins. basic amount         Change in vol. retirement
Amounts in NOK thousand                                       1%                    -1%                  1%
Change in expense                                                   13,710               -9,156            -5,047
Change in commitment                                              183,967              -134,537           -43,028
tions. In the note, AFP
ows the regulations for




 of equity investments.


ock market. The fund's




                          cont.
                 Total
                 2006

                   39,105
                   53,561
                  -59,386

                      537
                   33,816

                    1,182

                    2,268

                     1,488
                    -7,597
                   31,157


                 1,117,998
                   278,023
                 1,396,021
                -1,039,840

                     -537
                  355,644
                   50,222

                  405,866
                  -82,928
                 322,937


                  178,418
                  -54,813

                      -77
                  258,482
                   22,887
                   31,157

                  -18,146
                  -12,041
                  405,866
                  -82,928
                  322,937


                  226,478



                    2,511


Change in discount rate
                 -1%
                   18,985
                 371,184

Change in vol. retirement
                   -1%
                     3,489
                     6,509
Note 10: Other operating expenses

Amounts in NOK thousand                   2007       2006
Licence-related fees and compensation     7,293     16,992
Tools, equipment, materials              29,324     29,046
External contractor services             11,988     15,681
Telecommunications and postage           10,961      8,889
Rent and other property expenses         19,836     22,189
Transport costs                          18,086     13,602
Travel and subsistence allowance          9,106     17,301
Purchase of miscellaneous services       68,291     72,074
Repairs, maintenance                     30,985     30,379
Work with consultant                     26,885     22,238
Share of operating expenses, Sima
power plant                               18,937     18,495
Marketing, information                    37,170     16,386
Miscellaneous operating expenses          38,424     48,600
Total other operating expenses          327,285    331,873
Note 11: Financial income and expenses

Amounts in NOK thousand                                           2007       2006
Interest income                                                  78,969     67,346
Other financial income                                            7,322     34,821
Change in value, market-based current assets                      8,663     -1,930
Total financial income                                          94,954    100,236

Interest expense                                               -524,359    -551,812
Interest income own bond loans                                  139,254     121,950
Other financial expenses                                            330      -1,240
Total financial expenses                                      -384,775    -431,103

Change in value, interest contracts                            101,461     204,885
Change in value, currency contracts                             58,962     -72,913
Unrealised change in value, interest and currency contracts   160,422     131,972
Note 12: Tax

Amounts in NOK thousand                                              Change 2006-2007      2007       2006
Specification of the basis for deferred tax:
 Accounting provision                                                             1,950       -         -1,950
 Financial contracts                                                             76,164    -10,232     -86,396
 Tangible fixed assets                                                           81,629    433,978     352,348
 Net pensions (secured scheme)                                                   75,700    -98,190    -173,890
 Trade debtors                                                                     -           -50         -50
 Profit (and loss) account                                                       -2,275     -6,672      -4,396
 Total tax-increasing differences                                               233,168    318,834      85,666


Intangible asset (customer portfolio)                                            -4,800     -4,800       -
Financial contracts                                                              -5,957     69,019     74,977
Accounting provision                                                             -5,000       -         5,000
Trade debtors                                                                      -677      2,929      3,606
Stock                                                                               466        466       -
Tangible fixed assets                                                            24,182    251,466    227,284
Goodwill etc.                                                                    -2,285      9,319     11,603
Profit (and loss) account                                                         3,757      1,078     -2,678
Net pensions (secured scheme)                                                   143,484    309,881    166,396
Pension commitment (unsecured scheme)                                            74,970    138,980     64,010
Loss carryforward                                                                24,854    219,710    194,855
Total tax-reducing differences                                                  252,995    998,048    745,054


 Basis net deferred tax asset                                                   19,827     679,214    659,387

Deferred tax obligation (28% of tax-increasing differences)                      -65,287    -89,274    -23,987
Deferred tax obligation                                                         -65,287    -89,274    -23,987

Deferred tax asset (28% of tax-reducing differences)                             70,839     279,454    208,615
Non-capitalised deferred tax asset                                                4,558      32,559     28,001
Deferred tax asset                                                              66,280     246,894    180,614

Ground rent income:
Basis for deferred tax                                                           37,057    323,330    286,273

Deferred tax asset (27 / 30%)                                                    19,705     96,999     77,294

 Total deferred tax asset - ordinary income and ground rent income               85,986    343,893    257,907
 Total deferred tax obligation                                                  -65,287    -89,274    -23,987


                                                                                                         cont.
cont. Note 12: Tax

Amounts in NOK thousand                                                       2007         2006

Basis for tax expense, change in deferred tax and tax payable:
 Group pre-tax profit/loss                                                    1,611,482    1,830,580
 Permanent differences in the group                                            -160,465      167,857
 Basis for year's tax                                                         1,451,016    1,998,437
 Entered against equity (change in pension liability etc.)                     -133,624     -240,664
 Change in temporary differences (intragroup transfer)                            6,041       18,109
 Change in temporary differences (basis for change in deferred tax)              19,827     -700,933
 Corrected erroneous temporary difference in opening balance                       -688      130,368
 Implementation of periodic maintenance                                            -          30,460
 Correction income 2005                                                            -         -39,076
 Taxable income (basis for tax payable in the balance sheet)                 1,342,572    1,196,700


Breakdown of the tax expense on ordinary income
 Tax payable (28% of the basis for tax payable in the profit/loss account)     375,920      335,076
 Change in deferred tax (28% of the change in temporary differences)            34,922      134,409
 Tax expense (28% of the basis for the tax expense for the year)               410,843      469,485
 Deviation from previous years/ entered against equity                           5,050        1,009
 Tax Himal Power                                                                -7,157         -
 Total tax expense on ordinary income (28%)                                    408,736      470,494

Breakdown of the tax expense on ground rent income
 Tax payable on ground rent income                                             223,043      261,790
 Change in deferred tax on ground rent income                                  -19,705      -59,596
 Tax effect of implementation of periodic maintenance                             -          -8,224
 Correction OB deferred tax asset                                                 -           1,841
 Deviation, previous years                                                       2,649       -3,164
 Tax expense on ground rent income (27%)                                       205,986      192,647

 Tax expense on ordinary income and ground rent income                        614,722      663,141

Tax payable in the balance sheet
 Tax payable on ordinary income (28%)                                          376,007      335,076
 Credit deduction                                                               -1,278         -642
 Ordinary income tax                                                           374,729      334,434

Tax payable on ground rent income (27%)                                        223,043      261,790
Provision for tax on ground rent income for previous years                        -          38,084
Total tax payable on ground rent income                                        223,043      299,874

 Tax payable on ordinary income and ground rent income                        597,771      634,308



Average tax rate, total tax                                                     38.1 %       36.2 %
Average tax rate, ordinary tax                                                  25.4 %       25.7 %
Note 13: Intangible assets

Amounts in NOK thousand
The group's research and                                                          2007               2006
                       development linked to new sources of energy consists of general research projects aimed at gaining more
Watercourse rights                                                              218,047           217,756
Deferred tax asset                                                              343,893           257,907
Other intangible assets                                                          19,103              1,956
Total                                                                         581,043            477,620

See note 12 for more information about the deferred tax asset.

                                                                           Watercourse Other intang.
Amounts in NOK thousand                                                          rights       assets                  Total
Acquisition cost 1 Jan. 2006                                                   217,349         7,384               224,732
Accumulated depreciation and write-downs 1 Jan. 2006                               -          -5,811                -5,811
Book value 1 Jan. 2006                                                        217,349          1,573               218,921

The financial year 2006
Book value 1 Jan. 2006                                                           217,349              1,573        218,921
Additions (through investments)                                                      407                -              407
Depreciation                                                                        -                    383           383
Book value 31 Dec. 2006                                                         217,756               1,956        219,712

31 Dec. 2006
Acquisition cost                                                                 217,756               7,384       225,140
Accumulated depreciation and write-downs                                            -                 -5,427        -5,427
Book value 31 Dec. 2006                                                         217,756               1,956        219,712

The financial year 2007
Book value 1 Jan. 2007                                                           217,756              1,956        219,712
Additions (through investments)                                                      291             13,000         13,291
Additions through purchase of new subsidiaries 1 Jan.                               -                 6,470          6,470
Depreciation                                                                        -                -2,323         -2,323
Book value 31 Dec. 2007                                                         218,047             19,103         237,150

31 Dec. 2007
Acquisition cost                                                                 218,047             26,853        244,900
Accumulated depreciation and write-downs                                            -                -7,750         -7,750
Book value 31 Dec. 2007                                                         218,047             19,103         237,150

Ordinary depreciation for year                                                       -                -2,323          -2,323
The group's research and development linked to new sources of energy consists of general research projects aimed at gaining more

Expected useful lifetime                                                     perpetual         5-7 years


Write-down evaluation of intangible assets with perpetual lifetimes

BKK tests for write-downs by looking at intangible assets and tangible fixed assets as a unit and assessing their
value in relation to average annual production.

The total book value of watercourse rights and tangible fixed assets in BKK Produksjon AS at 31 Dec. 2007
corresponds to 0.8 NOK/kWh average annual production. This is considerably lower than the market value. The
excess value is assumed to be mainly linked to watercourse rights. Further testing of the need to write down
watercourse rights has, therefore, not been found necessary.
Note 14: Tangible fixed assets

                                                          Means of   Production     Network District heating Telecom inst      Plant under            Total
                                                         transport, installations installations installations Operating centre construction
                                                          Fixtures                                             Other buildings
                                                         Machinery                                                and plant
                                                       IT equipment
                                                          IT soft-                                              Plots of land
Amounts in NOK thousand                                     ware

At 1 Jan. 2006
Acquisition cost                                              520,505        7,711,239     4,800,877           581,500        1,097,159    157,427 14,868,707
Accumulated depreciation and write-downs                     -346,210       -2,648,586    -1,712,803           -39,687         -231,812     -1,500 -4,980,597
Capitalised value at 1 Jan. 2006                             174,295        5,062,654     3,088,074           541,813          865,347    155,927 9,888,110

The financial year 2006
Capitalised value at 1 Jan. 2006                              174,295        5,062,654      3,088,074          541,813          865,347    155,927   9,888,110
Additions through purchase of operating assets                 28,494           -2,684         59,550            8,691           40,993    155,423     290,468
Additions through own production of operating assets            5,481            9,715         50,828              546            2,498     14,194      83,263
Transf. from plant under constr. excl. cap. interest            3,353           85,568         15,406           31,964            3,849   -147,195      -7,055
Capitalised loan expenses                                        -                 183          1,982              848               44      3,998       7,055
Reclassification between plant groups                            -                -           -13,588             -                -        13,588        -
Disposals at book value                                        -1,637             -185       -120,214             -              -2,021       -       -124,057

Depreciation                                                  -51,140         -186,059      -210,993           -15,695          -61,619       -     -525,506
Write-downs                                                      -                -             -                 -                -218     -1,415    -1,633
Capitalised value at 31 Dec. 2006                            158,847        4,969,191     2,871,046           568,167          848,873    194,521 9,610,645

At 31 Dec. 2006
Acquisition cost                                              549,614        7,803,521     4,728,842           623,549        1,141,856    197,436 15,044,819
Accumulated depreciation and write-downs                     -390,768       -2,834,330    -1,857,796           -55,382         -292,983     -2,915 -5,434,174
Capitalised value at 31 Dec. 2006                            158,847        4,969,191     2,871,046           568,167          848,873    194,521 9,610,645

The financial year 2007
Capitalised value at 1 Jan. 2007                              158,847        4,969,191      2,871,046          568,167          848,873    194,521   9,610,645
Additions through purchase of operating assets                 34,457           59,309         94,511           23,441           22,721     97,271     331,709
Additions through own production of operating assets            5,827           26,580         71,294              850            1,359      3,685     109,596
Additions through purchase of new companies                        34             -              -                -                -          -             34
Transf. from plant under constr. excl. cap. interest           19,547           86,237        -35,131           47,194           27,910   -145,757        -
Transf. from plant under constr. cap. interest                    110            2,247            227              847              186     -3,618        -
Disposals at book value                                        -1,299           -1,941         -1,457             -                -          -         -4,697
The year's capitalised loan expenses                              452            5,599          3,385            1,051              429      2,558      13,473

Depreciation                                                  -46,096         -183,816      -201,934           -16,294          -60,964       -     -509,104
Capitalised value at 31 Dec. 2007                            171,878        4,963,405     2,801,943           625,255          840,515    148,660 9,551,656

At 31 Dec. 2007
Acquisition cost                                              605,830        7,981,092     4,863,129           696,931        1,194,462    151,574 15,493,020
Accumulated depreciation and write-downs                     -433,952       -3,017,688    -2,061,186           -71,676         -353,947     -2,915 -5,941,363
Capitalised value at 31 Dec. 2007                            171,878        4,963,405     2,801,943           625,255          840,515    148,660 9,551,656

Capitalised loan expenses at 31 Dec. 2007                       1,093           36,378        32,713           42,849           12,516      6,186    131,734

Percentage ordinary depreciation                        3,33 - 33,3%       1,5-4 %        2,86-4 %          2 - 4%         2 - 10%
Useful life                                              3-30 years      25-75 years     25-35 years     25-50 years     10 - 50 years
Depreciation plan                                       Straight-line    Straight-line   Straight-line   Straight-line   Straight-line


Network installations consist of the distribution network, the regional grid and the national grid.
Note 15: Associated companies
1Statkraft associated companies and joint Energiverk
Shares in AS, Skagerak Kraft AS, Trondheim ventures Kraft AS, Agder Energi AS and Bergenshalvøens Kommunale Kraftselskap A S each has a 20 % holding in Statkraft AS..
Shares in other companies
Shares in associated companies are valued using the cost method in the consolidated accounts. This applies to the following companies:


                                                              Registered           Holding            Share of          Published
                                                                office                                 votes              price
                                                                                                                       quotation for
Name                                                                                                                    fair value
Feios Kraftverk AS                                         Vik i Sogn                    20.00%            20.00%           No
Fjordkraft AS                                              Bergen                        48.85%            48.85%           No
Gasnor AS                                                  Karmøy                        20.00%            20.00%           No
Himal Power Ltd                                            Nepal                         23.00%            23.00%           No
Kjøsnesfjorden Kraftverk AS                                Førde                         20.00%            20.00%           No
Småkraft AS                                                Bergen                        20.00%            20.00%           No
Sogn og Fjordane Energi AS                                 Sandane                       38.51%            38.51%           No
Sognekraft AS                                              Vik i Sogn                    44.44%            44.44%           No
Sund Energi AS                                             Skogsvåg                      42.92%            42.92%           No
Sunnfjord Energi AS                                        Førde                         37.45%            37.45%           No
Sunnhordland Kraftlag AS                                   Leirvik                       33.44%            33.44%           No
Tafjord Kraft AS                                           Ålesund                       43.12%            43.12%           No
Tafjord Mimer AS                                           Ålesund                       28.75%            28.75%           No


                                                              Fjordkraft       Sunnhordland           Tafjord          Sognekraft           Sunnfjord        Sogn og Fj.     Himal Power        Subtotal 1
Amounts in NOK thousand                                           AS            Kraftlag AS           Kraft AS             AS               Energi AS         Energi AS         Ltd*

Acquisition cost                                                    461,826             990,750           989,562             372,250             243,395         980,087           122,005       4,159,875
Book equity on acquisition date                                     311,151             302,889           354,437              96,993             147,156         501,318            52,576       1,766,520
Excess value on acquisition date                                    150,675             687,861           635,125             275,257              96,240         478,769            69,429       2,393,356

Opening balance 1 Jan. 2007                                         245,820             950,203           958,775             319,044             256,131         763,349           127,462       3,620,784
Additions during the year                                              -                   -                 -                   -                   -               -                 -               -
Tax on dividend                                                        -                   -                 -                   -                   -               -                7,157           7,157
Share of profit/ loss for the year                                   49,630              93,304            51,044               8,340              13,512          16,703            15,412         247,944
Correction of share of profit/loss previous year etc.                    -5                -130             2,986               1,369               2,245           3,196               688          10,350
Depreciation of excess value                                        -13,798             -12,612           -12,651              -6,664              -2,657         -13,969            -1,919         -64,269
Transfers to/from the company (dividend)                            -14,320             -76,314           -36,221             -11,110              -9,736         -37,055           -25,559        -210,315
Disposals at book value                                                -                   -                 -                   -                   -               -                 -               -
Exchange rate gains entered against equity                             -972                -                 -                   -                   -               -              -16,921         -17,893
Other changes entered against equity                                 -2,974              53,111               783               3,990               4,321           4,300              -             63,531
Closing balance 31 Dec. 2007                                       263,382           1,007,563           964,716             314,968             263,817         736,524           106,319       3,657,289

Of which excess value balance at 31 Dec. 2007                          -                561,977           536,548             226,806              74,591         408,927            31,120       1,839,967
Of which goodwill balance at 31 Dec. 2007                            57,539                -                 -                  1,800               2,275            -                 -             61,614

                                                              Subtotal 1          Gasnor AS           Sund**             Feios **          Småkraft AS        Tafjord        Kjøsnesfj.**          Total
Amounts in NOK thousand                                                                              Energi AS         kraftverk AS                           Mimer AS       kraftverk AS

Acquisition cost                                                  4,159,875               78,866             1,000                    21           20,010           11,794                 70     4,271,635
Book equity on acquisition date                                   1,766,520               53,972             1,000                    21           19,424           11,794                 70     1,852,799
Excess value on acquisition date                                  2,393,356               24,894              -                   -                   587             -                -          2,418,836

Opening balance 1 Jan. 2007                                       3,620,784               67,559                877                   21           13,268            2,043               70       3,704,621
Additions during the year                                              -                    -                  -                  -                17,000             -                -             17,000
Tax on dividend                                                       7,157                 -                  -                  -                  -                -                -              7,157
Share of profit/ loss for the year                                  247,944                2,481                 -16                   8           -2,446           -2,706             -125         245,140
Correction of share of profit/loss previous year                     10,350                   60               -                  -                  -                  98             -             10,509
Depreciation of excess value                                        -64,269               -4,979               -                  -                  -                -                -            -69,248
Transfers to/from the company (dividend)                           -210,315                 -                  -                  -                  -                -                -           -210,315
Disposals at book value                                                -                    -                  -                  -                  -                -                -               -
Exchange rate gains entered against equity                          -17,893                 -                  -                  -                  -                -                -            -17,893
Other changes entered against equity                                 63,531                 -                  -                  -                    76             -                -             63,607
Closing balance 31 Dec. 2007                                     3,657,289               65,121                861                    28          27,898             -565               -55      3,750,578

Of which excess value balance at 31 Dec. 07                       1,839,967                 -                  -                  -                   -                  -             -          1,839,967
Of which goodwill balance at 31 Dec. 2007                            61,614                9,958               -                  -                   -                  -             -             71,571


*) Himal Power LTD (HPL) owns and operates the Khimti hydroelectric power plant in Nepal. The power plant was put into operation on 11 July 2000, and after 50 years it will become the
property of the Nepalese state free of charge. The power plant will then be fully depreciated. In connection with the financing of the project, it was agreed that contractors and equipment
suppliers are entitled to a retrospective settlement/ bonus totalling USD 9.37 million over and above the construction costs charged to HPL. When HPL came into a position to pay dividend, this
amount was to be settled before the owners could draw dividends for their own purposes. BKK AS has received dividend from HPL since 2003 and it has used the dividend received for
retrospective settlements with contractors and suppliers. Dividend received since 2005 goes in its entirety to shareholders and the Nordic Development Fund (NDF).

Nordic Development Fund (NDF) has contributed capital to the project. This means that NDF is entitled to receive a share of the dividend instead of interest on its capital contribution, but
without having a share of the votes in the company. As a result, BKK's dividend share is reduced from 23.0% to 20.4449%. In return, no interest expenses to NDF are charged to HPL's
accounts. With effect from 2004, a share of 20.449% of the profit/loss in HPL is taken to income in BKK's accounts.

**) Share of profits based on accounts at 31.12.06. The effect on profit of other reporting times is regarded as being insignificant.


                                                                                                                                                                                                cont.
cont. Note 15: Associated companies

Associated companies - 100 per cent basis
The presentation below shows an overview of financial information related to BKK's biggest investments in associated companies on a 100 per cent basis.
The figures are taken from the companies' official accounts for 2006 and provisional figures for 2007 and are presented in accordance with each company's accounting principles.

                                                                   Sunnhordland Kraftlag AS                        Tafjord Kraft                          Sognekraft AS
                                                                                                                      group *
Amounts in NOK thousand                                                   2007                  2006               2007             2006               2007               2006
Operating revenues                                                      703,069               745,420            775,400          765,637                167,692           195,268
Operating expenses                                                      354,792               312,938            514,712          453,952                111,009           116,376
Operating profit/loss                                                   348,277               432,482            260,688          311,685                  56,683           78,892
Pre-tax profit and minority interests                                   326,306               440,024            208,486          247,739                  50,024           72,089
Profit/loss for the year                                               266,306               230,024             98,606          120,070                  24,878           31,681
Of which minority                                                                                                 -2,487            1,227

Fixed assets                                                          2,307,289            2,130,101          2,432,920            2,339,217               424,965          416,381
Current assets                                                          288,488              232,359            228,992              291,505                47,468           93,310
Assets                                                               2,595,777            2,362,460          2,661,912            2,630,722               472,433          509,691
Equity                                                                1,058,826            1,030,076          1,039,494              934,838               246,523          246,645
Minority interests                                                          -                    -               2,241               20,966                    -                -
Long-term liabilities and obligations                                 1,083,728              826,204          1,160,209            1,160,701               137,439          151,191
Short-term liabilities                                                  453,223              506,180            459,968              514,217                88,471          111,855
Equity and liabilities                                               2,595,777            2,362,460          2,661,912            2,630,722               472,433          509,691



                                                                        Sunnfjord Energi                        Sogn og Fj. Energi                         Fjordkraft AS
                                                                             group*                                   group*
Amounts in NOK thousand                                                   2007             2006                    2007            2006                     2007          2006
Operating revenues                                                      290,298         352,195                  720,533        658,860                 2,757,809         4,006,294
Operating expenses                                                      214,858         269,552                  469,114        445,355                 2,670,981         3,947,760
Operating profit/loss                                                    75,440           82,643                 251,419        213,505                    86,828            58,534
Pre-tax profit and minority interests                                    73,277           77,141                 254,527        204,781                   122,962            66,558
Profit/loss for the year                                                66,307           56,067                 150,567        101,440                    94,485            58,603
Of which minority                                                         4,495            3,875                    -286            -260

Fixed assets                                                            961,415               796,757         2,110,710            2,083,926               91,329           130,221
Current assets                                                          170,548               176,905           407,588              384,635            1,056,405           707,275
Assets                                                               1,131,963               973,662         2,518,298            2,468,561            1,147,734           837,496
Equity                                                                  526,774               468,145         1,079,560            1,251,121              250,013           329,677
Minority interests                                                      15,376                15,653             3,875                4,171                   -                 -
Long-term liabilities and obligations                                   453,882               320,711           835,534              822,368               53,250            44,012
Short-term liabilities                                                  135,931               169,153           599,329              390,901              844,471           463,807
Equity and liabilities                                               1,131,963               973,662         2,518,298            2,468,561            1,147,734           837,496



*) Presentation of group figures. BKK incorporates its share of group profit/loss after minority.



1Owned by Statkraft Energi AS.
County administrations and publicly-owned energy companies have the right to //power in power plants run by Statkraft Energi AS. Statkraft Energi's shares in such power plants:
Note 16: Other financial fixed assets

Description                                                                          Valuation basis
Bonds and other long-term receivables in the group include paidHolding of shareswhich can be offset agianst tax payable on profits.
                                                                natural resource tax                                                                   2007        2006
Amounts in NOK thousand
Loans to associated companies - see note 28                                          IAS   39   Financial instruments (receivable) amortised cost    212,145     193,450
Loans to employees                                                                   IAS   39   Financial instruments (receivable) amortised cost     43,503      38,062
Loans to others                                                                      IAS   39   Financial instruments (receivable) amortised cost     26,906       8,396
Shares in Bredbåndsalliansen AS                                    16.67%            IAS   39   Financial investments in equity instruments          108,482     107,482
Shares in Vestkraft AS                                             20.00%            IAS   39   Financial investments in equity instruments                20          20
Shares in Vestavind Kraft AS                                       14.00%            IAS   39   Financial investments in equity instruments            4,500       3,000
Shares in Enivest AS                                               13.00%            IAS   39   Financial investments in equity instruments            1,000       1,000
Shares in OCAS AS                                                  26.40%            IAS   39   Financial investments in equity instruments           40,000         -
Shares in Sarsia Seed AS                                           18.00%            IAS   39   Financial investments in equity instruments            1,254         804
Shares in Fjordinvest Sørvest AS                                   18.10%            IAS   39   Financial investments in equity instruments            1,500         -
Shares in EM Systemer AS                                           16.60%            IAS   39   Financial investments in equity instruments              -         2,000
Other shares and holdings                                                            IAS   39   Financial investments in equity instruments              578         578
Prepaid right to thermal energy                                                      IAS   17   Operational rental agreement                          97,580     101,266
Prepaid rental Hodnaberg power plant                                                 IAS   17   Operational rental agreement                          14,319      14,948
Other financial fixed assets                                                                                                                           5,519       5,722
Total                                                                                                                                               557,306     476,727

Loans
In accordance with IAS 39 fixed interest loans will be recognised at amortised cost, i.e. pursuant to the effective interest method. The effective interest method is
not deemed to result in a valuation of BKK's lendings which deviates significantly from the nominal value of the loans. The loans are therefore valued at their
nominal value in the IFRS accounts.

Loans to employees:
A general borrowing limit of NOK 800,000 is set for major investments. The maximum repayment period is 15 years.

Loans over NOK 250,000 must be secured by mortgages in real property or a registered change in housing association documents for the entire loan amount
within 100 per cent of the mortgage appraisal.

The interest on personnel loans is approximately the same as the applicable limit before for tax is levied on the benefit of reasonable loans from employers By
approximately the same is meant the taxable interest rate with up to one additional percentage point.

Prepaid right to thermal energy:
BKK Varme AS has paid for the right to take delivery of all the thermal energy from the waste incineration plant in Rådalen. The amount is accrued in the accounts
over the agreement period, which is 35 years, until 1 Jan. 2035. The annual accrual cost is NOK 3,428,568.

Prepaid rental concerning Hodnaberg power plant
The power plant is owned by Voss Energi AS.
The amount will be accrued over the useful life of the power plant's generator, which is 30 years, until 1 Jan. 2032.

Shares in Bredbåndsalliansen AS and other shares and holdings:
The investments do not have a listed market price in an effective market, and it is assumed that fair value cannot be measured reliably. The investments are
therefore valued at acquisition cost.
Note 17: Stocks

Amounts in NOK thousand                       2007          2006
Operating equipment                          14,857        14,188
Total stocks                                14,857        14,188


The acquisition cost covers all the purchasing expenses and other expenses
incurred in bringing stocks to their current location and condition.

Stock is entered in the balance sheet at its acquisition cost, which is not
deemed to deviate significantly from the fair value of the stock at 31 Dec.
Note 18: Receivables and short-term liabilities
Trade debtors are entered after deductions for provision for loss of NOK 15.7 million.
Amounts in NOK thousand


Description of receivables                   Valuation basis                                                     2007        2006
Trade debtors                                IAS 39 Financial instruments (receivables) - amortised cost       474,777     398,301
Other short-term receivables                 IAS 39 Financial instruments (receivables) - amortised cost       125,482     259,274
Total receivables                                                                                              600,259     657,575


Change in provision for loss                                                                                      2007        2006
OB provision for loss                                                                                             5,957       6,470
Annual provision for bad debt                                                                                     5,201       5,556
Reversed former provision                                                                                        -5,957      -6,069
CB provision for loss                                                                                             5,201       5,957

The year's confirmed losses *)                                                                                    4,017      5,292

*) The year's confirmed losses are recognised as a reduction in trade debtors.
The change in losses for the year and the confirmed losses are expensed in the total amount of NOK 3,261,375 in 2007.
Bad debt is classified as other operating expenses in the profit and loss account.

Credit risk and currency risk relating to trade debtors are discussed in more detail in note 25.



At 31 Dec. the group had the following trade debtors which were due but not paid:                                2007        2006
Not fallen due                                                                                                 440,710     378,929
< 30 days                                                                                                       26,108       6,472
30-60 days                                                                                                       4,582       4,375
60-99 days                                                                                                       1,004       4,901
>90 days                                                                                                         2,373       3,623
Total                                                                                                          474,777     398,301




Description of short-term liabilitiesValuation basis                                                             2007      2006
Short-term part of long-term liabilities IAS 39 Financial instruments (loans) - amortised cost               4,701,500 1,993,000
Interest-bearing short-term liabilities                                                                      4,701,500 1,993,000

Trade creditors                              IAS 39 Financial instruments (commitment) - amortised cost        145,669     170,112
Indirect taxes etc.                          IAS 39 Financial instruments (commitment) - amortised cost        300,872     261,455
Other short-term liabilities                 IAS 39 Financial instruments (commitment) - amortised cost        280,904     248,493
Total other interest-free liabilities                                                                          727,445     680,060




The above balance sheet items have been valued at amortised cost.

For receivables, trade creditors, unpaid indirect taxes etc. and other short-term liabilities, the fair value will be approximately
the same as the book value.

In accordance with IAS 39, fixed interest loans will be recognised at amortised cost, i.e. pursuant to the effective interest
method. The effective interest method is not deemed to result in a valuation of BKK's loans which deviates significantly from
the nominal value of the loans. The loans are therefore valued at their nominal value in the IFRS accounts.
Note 19: Market-based unit trusts

BKK has investments in unit trusts. The investments are classified as a financial asset held for
sale and valued at fair value. Value changes in the period are recognised in the profit and loss
account (IAS 39).
                                               Acquisition cost       Market value/           Change in value
Amounts in NOK thousand                                             Realisation value*        from acquisition
 Market-based unit trusts 31 Dec. 2006                       14,115              60,049                 45,934
 Realised value change in 2007                                  -                   -                       -
 Market-based unit trusts 31 Dec. 2007                       14,115              68,712                 54,597

Changes in value for market-based unit trusts recognised in profit/loss account in 2007                  8,663
Changes in value for market-based unit trusts recognised in profit/loss account in 2006                 16,349
Note 20: Derivatives

Derivatives are valued at fair value with changes in
value recognised in the profit and loss account (IAS
39), cf. note 7.

Derivatives which are assets                                                          2007          2006
Amounts in NOK thousand
Energy derivatives:
Nord Pool contracts                                                                 18,212       187,623
Bilateral power contracts which are settled financially                             20,960        21,932
Total energy derivatives                                                            39,171       209,555

Other financial derivatives:
Interest swap agreements                                                            15,236        32,005
Currency forward contracts                                                         177,513        51,820
Total financial derivatives                                                        192,749        83,825

Total derivatives                                                                 231,920       293,381


Derivatives which are commitments                                                     2007          2006
Amounts in NOK thousand


Energy derivatives:
Nord Pool contracts                                                                123,909       143,057
Bilateral power contracts which are settled financially                             44,892        53,196
Total energy derivatives                                                           168,800       196,253

Other financial derivatives:
Interest swap agreements                                                            84,255       202,485
Currency forward contracts                                                         143,393        76,661
Total financial derivatives                                                        227,648       279,146

Total derivatives                                                                 396,448       475,399

Fair value of power derivatives
1) The value of the Nord Pool contracts is obtained from Nord Pool's own lists.

2) The value of bilateral power contracts is calculated on the basis of Nord Pool's market price graph
(system price), and agreed power volumes and prices. BKK's bilateral power contracts have terms of less
than two years. Power prices in Euros are converted into NOK. The conversion rate/forward exchange
rate for EUR/NOK is calculated on the basis of the EUR/NOK spot price and the market interest rate
graphs for Norwegian interest rates and Euro interest rates, respectively.

Fair value of interest swap agreements
The value of an interest swap agreement is calculated by discounting future cash flows relating to the
agreement. The discount interest rate is obtained from the market interest graph at the time of valuation.
BKK has no interest agreements in foreign currency.

Fair value of EURO/NOK forward contracts
BKK sells and buys Euros through forward contracts. The value of the forward contracts is calculated on
the basis of the estimated forward exchange rate for EUR/NOK, the term of the contract and the agreed
amount of currency. The forward exchange rate is calculated on the basis of the spot price at the time of
valuation and the market interest rate graphs for Norwegian interest rates and Euro interest rates,
respectively (covered interest parity).
Note 21: Bank deposits, cash
Kontanter og bankinnskudd for 2006 inkluderer -303 millioner kroner (inkl. kapitaliserte renter) vedrørende cash collateral, og 308 millioner kroner i bundne midler
Amounts in NOK thousand          Valuation basis                                                                  2007               2006

Cash and bank deposits             IAS 39: Financial instrument (receivable) amortised cost                     1,481,806         409,674
Total                                                                                                         1,481,806          409,674
 Cash collateral er innbetalinger til/fra motparter som sikkerhet for netto urealiserte gevinster og tap Statkraft har på


The BKK Group has organised its bank accounts in a group account and it has a total overdraft facility limit of NOK 500
million.

Through the group account, the credit limit is transferred to the group, so that the available liquidity is the total of all
the liquidity in the group plus NOK 500 million. The overdraft facility is available to all the companies in the group
account system.
Note 22: Provisions, contingent liabilities and contingent assets

Amounts in NOK thousand



Provisions                                                                                                 2007                    2006
Pension commitments                                                                                      466,859                 322,937
Deferred tax                                                                                              89,274                  23,987
Liabilities relating to the physical delivery of free power (IAS 37)                                      33,596                  33,596
Liabilities relating to annual financial regulation compensation (IAS 39)                                 60,025                  60,025
Other provision for commitments                                                                           48,444                  51,946
Total provision for liabilities recognised in the accounts                                              698,198                 492,491


See note 9 for more information about pension commitments.

See note 12 for more information about deferred tax.

Prepaid rental of fibre cables in the amount of NOK 45,410,760 is included in Other provision and
commitments
The rental is taken to income over 3 and 20-25 years.



Contingent liabilities (not recognised in the accounts)

 A dispute has arisen with a contractor in connection with the building of Nygard pumped storage power plant. The district cou rt
found partly in the contractor's favour and the judgment has been appealed. The outcome is not deemed to be of material
significance to the company pursuant to accounting rules criteria.




Contingent asset (not recognised in the accounts)


 A dispute has arisen between BKK and the City of Bergen about the coverage of costs incurred in connection with the
 moving/alteration of network installations as a consequence of the construction of the Bergen light rail network. This is als o the case
 between BKK and the Norwegian Public Roads Administration in connection with the construction of Ringvei Vest. Pending legal
 clarification, the costs are expensed in the company's accounts as they arise.

 In 1993-1994, agreements were entered into for contributions to investments relating to the power supply for the gas processing
 plant at Kollsnes. There are now plans to establish power production at Mongstad, and a new power line between Mongstad and
 Kollsnes, which may affect existing agreements. Negotiations are currently in progress with StatoilHydro to clarify the agree ments.


BKK is due NOK 80.9 million in network rental. The amount is expected to be paid in 2009.

Income surplus/shortfall network operations, closing balance (not recognised)                              2007                    2006
Accumulated income surplus transferred to later years                                                       -                       -
Accumulated income shortfall transferred to later years                                                   80,897                 110,024
Net income surplus/shortfall                                                                              80,897                 110,024


Network operations are regulated by the authorities through the Norwegian Water Resources and Energy Directorate (NVE) stipulating
annual income limits for each company. The regulatory regime means that a maximum permitted income per year (income limit) for
the monopoly area is stipulated by NVE. Every year, the difference between actual network revenues and the annually permitted
income is calculated in the form of an income surplus/ shortfall. Accumulated income surplus/shortfall (balance) is not recognised in
the accounts pursuant to IFRS.
Note 23: Interest-bearing debt and management of capital structure


BKK's goal is to maintain high financial flexibility to enable the group to quickly finance new investments. The capital stru cture shall also take accounts of the fact that liquidity
in the financial market is volatile. Unused contingency facilities help to ensure financial flexibility. BKK can take up loan s in the bond and certificate market, or take up direct
loans from financial institutions or other institutions. Both Norwegian and foreign markets and institutions are potential le nders. BKK has no loans secured by mortgages.

From a cost point of view, it will normally be more profitable to take up loans in the capital markets through the issue of c ertificates and bonds than to take up loans in the
bank market. Through buying and selling own bonds/certificates, BKK will help ensure good liquidity in BKK's securities.

BKK AS (the parent company) manages the BKK group banking system in cooperation with the group's bank. In practice, the group banking system means that BKK AS acts as
a bank for its subsidiaries. All external financing is done through BKK AS.




Certificate, bond and bank loans at 31 December 2007
Amounts in NOK million
                                                        Stock
                                                      exchange                               Interest                                                                    Capitalised
Security number                                         ticker              Type            regulation              Maturity year              Gross debt Own holding     debt *)
NO0010174782                                            BKK60            Bond loan            Floating                  2008                         1,100       -473              628
NO0010351661                                            BKK68          Certificate loan        Fixed                    2008                           250                         250
NO0010174956                                            BKK61            Bond loan            Floating                  2008                         1,250       -969              281
NO0010359789                                            BKK69          Certificate loan        Fixed                    2008                           250          -3             247
NO0010383904                                            BKK71          Certificate loan        Fixed                    2008                           600                         600
NO0001140545                                            BKK54            Bond loan             Fixed                    2008                            65                          65
NO0010383821                                            BKK70          Certificate loan        Fixed                    2008                         1,100       -396              704
NO0001140552                                            BKK55            Bond loan             Fixed                    2008                           600          -5             595
NO0010392772                                            BKK72          Certificate loan        Fixed                    2008                           650        -58              592
NO0010397987                                            BKK73          Certificate loan        Fixed                    2008                           525        -35              490
NO0001140537                                            BKK53            Bond loan             Fixed                    2008                           250                         250
NO0010237878                                            BKK63            Bond loan            Floating                  2009                         1,000       -776              224
SW2540335                                                  -             Bank loan            Floating                  2009                           435                         435
NO0010179815                                            BKK62            Bond loan             Fixed                    2010                           500       -231              269
NO0010255201                                            BKK64            Bond loan            Floating                  2010                           300       -145              155
Nordiska Investeringsbanken                                -             Bank loan            Floating                  2010                           324                         324
NO0010265697                                            BKK65            Bond loan            Floating                  2012                           450                         450
Total capitalised certificate and bond loans, of which:                                                                                              9,649     -3,091            6,559
   Short-term interest-bearing certificate and bond loans                                                                                                                        4,702
   Long-term interest-bearing certificate and bond loans                                                                                                                         1,857

Long-term interest-bearing certificate and bond loans                                                                                                                            1,857
Other long-term liabilities                                                                                                                                                          3
Total long-term interest-bearing debt                                                                                                                                            1,860



The company has a short-term overdraft facility of NOK 500 million in its operating account, and an unused long -term overdraft facility of NOK 800 million which runs until 29
April 2010.

Bank deposits, cash and cash equivalents at 31 Dec. 2007 were NOK 1,482 million.


*) Debts will be valued at amortised cost (IAS 39), i.e. pursuant to the effective interest method. This means that the capitalised value of fixed interest loans will be added to
the total discounted future cashflows linked to the loans. The discount interest rate is the original calculated effective interest for the loan. Loans with floating interest are
initially valued at the nominal value minus the costs of establishing the loan. The cost of taking up a loan will be expensed using the straight-line method over the loan's
lifetime in addition to accrued interest. The effective interest method does not result in values for BKK's loans that deviate significantly from the nominal value of the loans.
The nominal value is therefore used as the amortised cost value in the balance sheet.


Interest swap agreements
BKK has entered into interest swap agreements to manage the interest rate risk in the group, cf. note 23. In the consolidated accounts (IFRS), the interest swap agreements
(derivatives) are valued at fair value, and changes in value during the period are recognised in the profit and loss account, cf. note 6 and note 18. In BKK AS's (NGAAP)
accounts, the interest swap agreements are not capitalised, and interest expense/income are recognised in the profit and loss account as they arise.



Overview of current interest swap                  Nominal value      Duration
agreements at 31 Dec. 2007                          NOK million   at 31 Dec. 2007
Interest swap agreement 1                                    -250       0.0                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 2                                    -155       0.2                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 3                                    -250       0.2                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 4                                    -200       0.2                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 5                                    -150       0.2                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 6                                  -2300        0.4                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 7                                  -1700        0.7                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 8                                    -300       0.9                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 9                                    -250       1.4                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 10                                   -100       2.0                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 11                                    500       3.3                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 12                                   -500       3.4                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 13                                  2400        4.0                    BKK   pays   a   fixed   rate   of   interest
Interest swap agreement 14                                   -400       4.2                    BKK   pays   a   fixed   rate   of   interest
Note 24: Share capital and shareholder information etc.

All amounts in the note are in whole NOK.

The share capital in BKK AS at 31 Dec. 2007 consists of the following classes of shares:

Classes of shares                                   Number          Nominal value            Book value
A shares                                             74,000          1,850,000,000        1,850,000,000
B shares                                             49,230          1,230,750,000        1,230,750,000
C shares                                             24,475            611,875,000          611,875,000
Total                                               147,705         3,692,625,000        3,692,625,000

Class A shares may only be owned by municipal and county authorities in the counties of Møre og Romsdal, Sogn og Fjordane,
Hordaland and Rogaland.

Class B shares are freely negotiable.

Shares in class C may only be transferred to such legal persons as may own shares in the company at all times without the
company, pursuant to licensing legislation, forfeiting its rights as a result of it no longer being deemed to be "publicly ow ned".

Voting rights: One vote per share in all three classes of shares.

On the transfer of shares, shareholders in the same share class have pre-emption rights. Shareholders in other share classes
only have pre-emption rights if shareholders in the same share class do not exercise their pre -emption rights.




Own. structure at 31 Dec. 2007                     A shares               B shares              C shares         TOTAL       Holding

City of Bergen                                        55,765                                                   55,765        37.75%
Askøy municipality                                     3,666                                                    3,666         2.48%
Lindås municipality                                    2,883                                                    2,883         1.95%
Fjell municipality                                     2,794                                                    2,794         1.89%
Sund municipality                                      1,504                                                    1,504         1.02%
Kvam municipality                                      1,329                                                    1,329         0.90%
Meland municipality                                    1,124                                                    1,124         0.76%
Radøy municipality                                     1,092                                                    1,092         0.74%
Voss municipality                                        923                                                      923         0.62%
Øygarden municipality                                    764                                                      764         0.52%
Austrheim municipality                                   640                                                      640         0.43%
Vaksdal municipality                                     549                                                      549         0.37%
Gulen municipality                                       401                                                      401         0.27%
Fedje municipality                                       171                                                      171         0.12%
Høyanger municipality                                    172                                                      172         0.12%
Masfjorden municipality                                  153                                                      153         0.10%
Granvin municipality                                      70                                                       70         0.05%
Statkraft Regional Holding AS                                               49,230                24,475       73,705        49.90%
Total                                                74,000                 49,230                24,475      147,705      100.00%



Calculation of earnings per share                                              2007                  2006

Profit/loss for the year                                               996,759,490         1,167,438,572
Of which minority share                                                 -8,031,742            -4,911,223
Of which the BKK Group's share                                      1,004,791,232         1,172,349,795

Number of shares (all share classes)                                        147,705               147,705

Profit/loss in NOK per share for
the part of the profit/loss for the
year which is allocated to the
company's shareholders
(average all share classes)                                                   6,803                 7,937


                                        Amount per share
Dividend paid and proposed              (NOK)                                2007
Dividend paid for 2006                  kr 5,045                       745,171,725
Proposed dividend for 2007              kr 6,120                       903,954,600
Note 25: Market, credit and liquidity risk

BKK operates a business which is exposed to risk in many areas. The goal of risk management is not to remove risk,
but to take the correct risk on the basis of the group's willingness and ability to take risk, expertise, financial
soundness and development plans. The intention of risk management is to identify threats and opportunities for the
company, and to steer risk towards an acceptable level so that there is reasonable security that the company will
achieve its goals.

BKK takes an overall approach to the group's financial risks. The objective of its risk management is to manage the
fluctuations in BKK AS's (parent company) profit after tax within an overriding limit stipulated by BKK's board. The
overriding risk limit in turn forms the basis for the limits on the group's management of risk in relation, among other
things, to power sales, currency and fixing of interest rates.

1. Risk in power sales (power price and currency risk)
Variations in precipitation and inflows to hydroelectric power installations and variation in the demand for power mean
that there is uncertainty (market risk) attached to future power prices and production volumes.
The risk to profits in BKK is significantly affected by the development in profits in the subsidiary BKK Produksjon AS,
as a result of fluctuations in power prices and production volume. The risk can be reduced by selling the power at a
stipulated price in advance, and BKK continuously sells parts of its expected production for the next four years in
advance. Within the stipulated risk limit, the goal is to generate the highest value possible from the precipitation that
falls in the power plants' catchment area. The simulation of different outcomes and power prices ensures that advance
sales are made within the risk limits.

The power prices on Nord Pool are in Euros, and power sales are therefore exposed to currency risk (market risk). The
currency risk is reduced by using currency forward contracts to sell part of the expected income in Euros for the next
four years in advance. Simulating the effect of fluctuations in the exchange rate on BKK AS's profit forms the basis for
the risk limit for forward sales of currency.

2. Interest risk
Interest rate fluctuations affect BKK's cash flow and profits in several ways. In addition to affecting financial expenses,
fluctuations in the interest rate also affect the income limit for network operations, the tax on ground rent income for
the production business and pension expenses.

The interest risk can be managed by entering into interest swap agreements, whereby BKK agrees to pay
fixed/floating interest rate and receive floating/fixed interest for an agreed capital sum. The group's financial strategy
aims to achieve overall management of interest rate risk. This means that the overall effect of interest rate
fluctuations on BKK's profits is used as the basis for entering into interest swap agreements. The simulation of
different outcomes of interest rate developments ensures that fixed -interest contracts are entered into within the risk
limits.

3. Credit risk
Financial power contracts and interest and foreign currency agreements are associated with counterparty risk (credit
risk). The risk relating to financial power contracts is reduced through settlement via Nord Pool. Counterparty risk
relating to interest swap agreements and currency forward contracts is reduced by choosing counterparties/banks
with high credit ratings. Credit risk is also associated with trade debtors and loans to associated companies and
others. BKK has no significant concentration of credit risk in its trade debtors, which consist of a large number of
individual customers.

4. Liquidity risk
Liquidity risk, i.e. risk of the group not being able to service its financial commitments as they fall due, is limited by
means of a balanced capital structure, cf. note 23. Liquidity management aims to ensure that the group has a liquidity
reserve at all times which at least covers loans which fall due within the next three months. Unused contingency
facilities help ensure financial flexibility.

5. KILE risk
Network operations is a natural monopoly subject to a publicly-regulated income limit. Part of the regulatory regime
consists of the KILE scheme. Within limits, the company can demand payment from users of the network in order to
ensure high supply security in the network. The network company carries the risk that costs resulting from power line
disruption may exceed the income that can be charged to cover these costs. The KILE risk is managed through
investments in the network, maintenance procedures, contingency procedures and the planning of necessary
interruptions.

6. Operational risk
BKK has considerable risk exposure in connection with its operational activities. Insurance has been taken out that
covers damage to assets (primarily power plants), lost production and harm to life and property, for example as a
result of fire, flooding or a dam breach.

7. Structural risk
The production and distribution of power is an activity that is subject to considerable regulation by the Norwegian
authorities. At the same time, however, the activity is becoming more and more part of the European power market.
Changes in statutes and regulations can significantly affect competitive conditions in the Norwegian and European
power market
Market risk (amounts in NOK million)
                                                Net exposure          Sensitivity analysis for exposure at 31 Dec. 2007*) in
                                                                                                                     Equity
Financial instrument (derivative)                                                                                  consolidated
                                               31.12.07 (31.12.06)                             Group profit/loss     accounts
                                                                     Increase in market
Net power sold under financial contracts
                                                   5,0   (7,0)       price for power of 1            -29                -29
(TWh) next 4 years
                                                                     EUR/MWh
                                                                     Increase in EUR/NOK of
Euros sold under financial contracts ( EUR
                                                   547 (448)         NOK 0.1 (decrease in            -39                -39
million) next 4 years
                                                                     value of NOK)
                                                                     Negative change in
Duration of borrowing and interest
                                                   1,5 (2,1)         interest rate curve of          -35                -35
agreements
                                                                     0.5 percentage point.
*) Derivatives are valued at fair value and changes in value are recognised in the profit and loss account. The value of deri vatives
change in line with changes in the underlying variable, the power price, exchange rate (EURO/NOK) and the interest rate curve ,
respectively, for the different classes of derivatives. The sensitivity analysis shows the estimated net change in value afte r tax in
the different classes of derivatives for a given change in the underlying variable e.g. an increase in the power price of 1 E UR/MWh
will result in a decrease in value after tax of approx. NOK 29 million when BKK has sold 5 TWh in advance (fixed the price). The
figure is arrived at as follows: 5 TWh * 1 EUR/MWh * 8 EUR/NOK * (1 - 0.28) = NOK 29 million. Put simply, the decrease reflects
the increase in income BKK would have earned by fixing the sales price instead of receiving the market price which has increa sed
by 1 EUR/MWh. Conversely, a fall in the market price will lead to an increase in the value of the derivatives when the net ex posure
is sales of power. Any effect of the change in value on equity will arise via the profit and loss account since the group has no
hedging derivatives which would have resulted in entries directly against equity.



Credit risk (amounts in NOK million)
                                                  Maximum
                                                                      Measures to combat
Financial instrument (receivables)               exposure to
                                                                          credit risk
                                                  credit risk
Power sold/bought under financial contracts
next 4 years                                                  39     Settlement via Nord Pool
Euros sold under financial contracts next 4
years                                                        178      Banks with high rating
Interest agreements                                           15      Banks with high rating
Trade debtors                                                474                -
Loans from BKK to associated companies
                                                             239        Own credit rating
and others




Liquidity risk (amounts in NOK million)
                                                   Maximum
                                                                      Measures to combat
Financial instrument (commitments)                exposure to
                                                                         liquidity risk
                                                 liquidity risk
Power sold/bought under financial contracts
                                                             169
next 4 years                                                              Balanced capital
Euros sold under financial contracts next 4                  143      structure. Minimum of
years                                                                   3 months' liquidity
Interest agreements next 4 years                              84
                                                                         reserves. Unused
Trade creditors                                              145        overdraft facility of
                                                                         NOK 800 million.
Bonds and certificates issued by BKK                     6,559




Amounts in NOK million                                2008                    2009                 2010                 2011+
                                                      4,702                    659                  748                   450
 Due date profile for bonds and certificates
                                                    Q1 2008                 Q2 2008               Q3 2008              Q4 2008
             per year/quarter
                                                         0                      0                     0                  4,702
Note 26: Remuneration of leading personnel and the board


BKK is organised in three business areas and four staff and support functions. Each of these is managed by an executive vice president who reports
to the CEO. The CEO and the executive vice presidents make up the Corporate Management Team.



Remuneration of leading personnel in 2007                                             Wages                Other            Pension         Loans at
                                                                                                                                            31 Dec.
                                                                                                      remuneration,          costs           2007
                                                                                                      car allowance
Amounts in NOK thousand                                                                                    etc.

The Corporate Management Team:
CEO, Atle Neteland                                                                            1,833                179             1,130             -
CFO, Birger C. Schønberg                                                                      1,246                132               600             445
Executive Vice President of Human Resources Jostein Søfteland                                   985                127               436               26
Executive Vice President of Public Relations Mona Mekki until 30 Sep. 2007                      629                 16               252             278
Executive Vice President of Business Development Lise Reinertsen 1 Aug. -
31 Dec.                                                                                         534                 63                504            -
Executive Vice President of Customer Lise Reinertsen 1 Jan. - 31 July                           471                 79
Executive Vice President of Customer Birthe I. Grotle from 13 Aug. 2007                         413                 11                304            -
Executive Vice President of Energy Wenche Teigland                                              975                128                538            -
Executive Vice President of Network Øivind Torkildsen                                         1,048                140               -               -



CEO: Retirement age 65 years. Obliged to take early-retirement from the age of 60 if the employer so wishes. Right to retire with voluntary early-
retirement pension on reaching the age of 60. Restrictions concerning assignments for other employers until the age of 65. Be nefits on retirement
before the age of 65: 100% of the pension basis (not limited to 12 times the National Insurance basic amount) the first year, and thereafter a gradual
reduction to 66% on reaching the age of 65. After reaching the age of 65, the rules in the general pension scheme apply conce rning a reduction in
pension for any shortfall in the pension earnings period (30 years), but the pension basis is not limited to 12 times the Nat ional Insurance basic
amount. The CEO has no bonus agreement or option rights.

Pension scheme for other members of the corporate management team (who have such agreements): Obliged to retire on reaching t he age of 60 if the
employer so wishes and to be transferred to a position as adviser. May retire voluntarily on reaching the age of 62 with 66% of the pension basis (not
limited to 12 times the National Insurance basic amount). Restrictions concerning assignments for other employers until the a ge of 65. After reaching
the age of 65, the rules in the general pension scheme apply concerning a reduction in pension for any shortfall in the pensi on earnings period (30
years), but the pension basis is not limited to 12 times the National Insurance basic amount.

See note 16 for loans to employees.




Board of Directors                                                                     Fees
Amounts in NOK thousand
Martin Smith-Sivertsen, Chair of the Board                                                      151
Torill Selsvold Nyborg                                                                           85
Anne Gine Hestetun                                                                               85
Hermann Saue                                                                                     85
Brit A. Bennett                                                                                  85
Tone Hernes                                                                                      85
Svein Davidsen                                                                                   85
Harald Matre                                                                                     85
Ingun Marie Leikvoll                                                                             85
Trude Kremner                                                                                     6

Board members who are employees of the Statkraft group do not receive a director's fee.
Note 27: Fees to external auditor

Auditor                                                       Amount excl. VAT
Amounts in NOK thousand
Mandatory audit                                                             1,476
Other attestation services                                                     77
Tax advice                                                                     25
Other services not included in the audit                                      958
Total                                                                       2,536


The mandatory audit also includes NOK 250,000 for the audit of the IFRS opening
balance as of 1 January 2007.

Tax advice and other services not included in the audit were partly provided by
Deloitte Advokater DA, a company which collaborates with Deloitte
Statsautoriserte Revisorer AS.
Note 28: Closely-related parties


Information is provided in accordance with IAS 24 "Information about closely -related parties".

All associated companies and joint ventures specified in note 15 are parties closely related to BKK.

Persons specified in note 26 who are part of the group's management and board of directors are also closely -
related parties.

There are no transactions or material balances outstanding with closely -related parties over and above the
transactions specified in this note and note 26.

All transactions with closely-related parties are entered into on market terms.




Revenues, expenses, receivables and commitments vis-à-vis closely-related parties

Amounts in NOK thousand


Revenues                                                                              2007                 2006
Fjordkraft AS                                                                     1,546,738            1,554,022
Sunnhordland Kraftlag AS                                                                754                   44
Sogn og Fjordane Energi AS                                                              139                  162
Sognekraft AS                                                                           144                  184
Tafjord Kraft AS                                                                        253                  330
Sunnfjord Energi AS                                                                      52                1,443
Tafjord Mimer AS                                                                       -                      14
Småkraft AS                                                                           6,093                4,101
Sund Energi AS                                                                           14                   31
Gasnor AS                                                                            16,820               11,859
Total revenues                                                                    1,571,007            1,572,191


Expenses                                                                             2007                 2006
Sognekraft AS                                                                          -79                    6
Sunnfjord Energi AS                                                                  8,239                8,060
Sunnhordland Kraftlag AS                                                             3,777               35,559
Fjordkraft AS                                                                      127,740              269,054
Sogn og Fjordane Energi AS                                                             137                   37
Tafjord Mimer AS                                                                       817                1,829
Gasnor AS                                                                            8,080                8,184
Tafjord Kraft AS                                                                      -                       3
Statkraft AS                                                                           615                  281
Total expenses                                                                     149,325              323,012


Outstanding balance at the end of the period - receivables                           2007                 2006
Fjordkraft AS                                                                      135,249               99,872
Sunnhordland Kraftlag AS                                                               -51                 -132
Sogn og Fjordane Energi AS                                                            -                     155
Sognekraft AS                                                                          175                 -237
Tafjord Kraft AS                                                                         8                  157
Sunnfjord Energi AS                                                                     17                   67
Småkraft AS                                                                          2,772                1,703
Gasnor AS                                                                            2,746                1,096
Total outstanding receivables                                                      140,915              102,682


Outstanding balance at the end of the period - commitments                            2007                 2006
Fjordkraft AS                                                                          -393              -22,703
Sunnhordland Kraftlag AS                                                             -3,361                 -
Sunnfjord Energi AS                                                                    -406                 -728
Gasnor AS                                                                            -4,835                 -130
Total outstanding commitments                                                        -8,996              -23,561


Loans to associated companies                                                        2007                 2006
Tafjord Kraft AS                                                                   113,400              113,400
Småkraft AS                                                                         44,800               27,800
Feios Kraftverk AS                                                                   2,000                2,000
Sognekraft AS                                                                       22,210               22,210
Kjøsnesfjorden Kraftverk AS                                                         29,734               28,039
Total loans to associated companies                                                212,145              193,450


Loans to associated companies have an interest-only period and the interest is agreed as the Nibor rate plus
a market risk add-on.
Note 29: Assets furnished as security and guarantees

BKK AS has not taken up loans with security in the company's assets, but several of the company's borrowings
have a clause relating to negative mortgaging.

BKK AS has issued a guarantee declaration to Fokus Bank on behalf of the subsidiary BKK Produksjon AS for a
guarantee furnished for the sum of NOK 600 million as security for the correct settlement of power trading in
the Nord Pool system.

BKK AS has issued a guarantee declaration to DnB NOR ASA on behalf of the subsidiary BKK Produksjon AS for
a guarantee furnished for the sum of NOK 10 million in favour of Nord Pool Spot AS.

BKK AS has issued a guarantee declaration to the Municipal Treasurer in Bergen for the sum of NOK 23 million
as security for tax deducted from employees in the group.

Småkraft AS has been granted a borrowing limit of NOK 224 million from its owners. BKK AS owns 20% and
has made loans available corresponding to its owner interest.

BKK AS has provided surety of NOK 129 million to Kjøsnesfjorden Kraftverk AS for loans in DnB NOR.
Note 30: Correction of errors

The accounts for 2006 and 2007 have been corrected for errors in the calculation of the tax
on ground rent income for the period 2001-2005, property tax for 2001-2005 and the
correction of concessionary power for 2005.

The correction of errors is entered against equity.


Description of errors entered against equity                           2007             2006
Amounts in NOK thousand

Error in calculation of   tax on ground rent income for the
period 2001-2005                                                     -12,208          -31,468
Error in calculation of   concessionary power 2005                      -              -2,802
Error in calculation of   property tax for the period 2001-2005       -4,862            1,651
Surtaxes and interest     as a result of the above                    -4,263             -
Total                                                               -21,334          -32,619


The size of the correction in relation to earnings per share             -2%             -3%
Note 31: Events after the balance sheet date

Transfer of an undertaking:

Fjordkraft AS and BKK have entered into an agreement for the transfer of the
production of services in the areas of settlement, invoicing and debt collection from
Fjordkraft AS to BKK with effect from 1 January 2008. The transfer is carried out in
accordance with the principles for the transfer of undertakings and means that 21
employees will be transferred to BKK. At the same time, the parties have agreed
that Fjordkraft AS is released from its commitments relating to its current lease
agreement with BKK. The agreement will have no overall effect on profits for BKK.

Share issue in Bredbåndsalliansen AS:
In January 2008, BKK participated in the share issue in Bredbåndsalliansen AS
(ownership interest 16.67%) in the amount of NOK 190,000,000.
Note 32: Licences

Pursuant to Act no. 50 of 29 June 1990 (the Energy Act), NVE has granted BKK Nett
AS a licence to sell electric power (sales licence) which is valid until 31 December
2009.

BKK Nett AS also holds plant licences and area licences in the company's supply
area.

Plant licences and area licences are valid until 1 January 2016.
Note 33: Reversion to public ownership


Pursuant to the provisions of the Concession Act no. 16 of 14 December 1917, BKK AS and BKK
Produksjon AS are publicly-owned companies that can be granted perpetual licences.

A publicly-owned company in this context is a company in which at least two -thirds of the capital
is owned, directly or indirectly, by the state, municipalities or county authorities.
Note 34: Reservoir levels
The acquisition cost covers all the purchasing expenses and other
                                                   2007        2006

1. The year's production in GWh:                  8,372     5,514
2. Average annual production in GWh:              6,661     6,660
3.1.Level 1 Jan.
     in GWh                                       2,948     2,708
     in % of capacity:                              91%       84%
3.2.Level 31 Dec.
     in GWh                                       2,598     2,948
     in % of capacity:                              80%       91%
4. Median level 31 Dec. since 1991
     in GWh:                                     2,284      2,284
     in % of capacity:                             71%        71%

Average annual production is the average production measured from 1981 to 2000.
adjusted for changes in capacity.

Reservoir levels are not recognised in the accounts.
Note 35: Transition to IFRS

With effect from 2007, BKK will prepare its consolidated accounts in accordance with the International Financial Reporting
Standard (IFRS).
BKK has stock-exchange-listed debt instruments and it is therefore required to prepare the consolidated accounts in
accordance with IFRS.
Pursuant to NGAAP, it is permissible in several areas to use the same principle as applies pursuant to IFRS.
BKK has harmonised its accounting principles in several areas, including in relation to pensions, tax on ground rent income
and periodic maintenance.

The biggest change resulting from the transition to IFRS is related to the treatment of financial derivatives.
The rules for hedge accounting pursuant to IFRS are stricter than is the case under NGAAP. BKK has chosen not to use
hedge accounting pursuant to IFRS. Financial derivatives are recognised at fair value and changes in value are recognised
in the profit and loss account.
The consequence may be more volatile profits.

The presentation of the profit and loss account has been changed somewhat in relation to NGAAP reporting.

The effect of the transition from NGAAP to IFRS on the group's financial position, the group's profit and cash flow are
described in more detail in this note.



Group balance sheet 1 Jan. 2007                                                       NGAAP           Effect of transition       IFRS
Amounts in NOK thousand                                           note               1/1/2007               to IFRS            1/1/2007
ASSETS
Intangible assets                                                                           424,393                 53,226            477,620
Tangible fixed assets                                               a                     9,522,117                 88,528          9,610,645
Investments in associated companies                                 b                     3,922,895               -218,274          3,704,621
Other financial fixed assets                                                                476,727                                   476,727
Total fixed assets                                                                      14,346,134                                14,269,614

Goods                                                                                        14,188                                    14,188
Receivables                                                          c                      767,599               -110,024            657,575
Financial investments                                                                        60,049                                    60,049
Derivatives                                                         d                                              293,381            293,381
Bank deposits, cash and cash equivalents                                                    409,674                                   409,674
Current assets                                                                           1,251,509                                 1,434,866

Total assets                                                                            15,597,643                106,837         15,704,480

EQUITY AND LIABILITIES
Paid-up equity                                                                            6,924,044                                 6,924,044
Retained earnings                                                   h                       401,239                312,960            714,199
Minority interests                                                                           21,978                                    21,978
Equity                                                                                   7,347,261                                 7,660,221

 Provision for commitments                                          e                       428,842                 63,649            492,491
 Interest-bearing long-term liabilities                             f                     5,762,000             -1,993,000          3,769,000
Long-term liabilities                                                                    6,190,842                                 4,261,491

Interest-bearing short-term liabilities                                                                          1,993,000          1,993,000
Tax payable                                                                                 634,308                                   634,308
Other interest-free liabilities                                     g                     1,425,232               -745,172            680,060
Derivatives                                                         d                                              475,399            475,399
Short-term liabilities                                                                   2,059,540                                 3,782,768

Total equity and liabilities                                                            15,597,643                106,837         15,704,480



Group balance sheet 31 Dec. 2007                                                      NGAAP           Effect of transition        IFRS
Amounts in NOK thousand                                                            31 Dec. 2007             to IFRS           31 Dec. 2007
ASSETS
Intangible assets                                                                           535,970                 45,073            581,043
 Tangible fixed assets                                                                    9,469,095                 82,561          9,551,656
 Investments in associated companies                                                      3,994,291               -243,714          3,750,578
 Other financial fixed assets                                                               557,306                                   557,306
 Total fixed assets                                                                     14,556,663                                14,440,583

Goods                                                                                        14,857                                    14,857
Receivables                                                                                 681,155                -80,897            600,259
Financial investments                                                                        68,712                                    68,712
Derivatives                                                                                                        231,920            231,920
Bank deposits, cash and cash equivalents                                                  1,481,806                                 1,481,806
Current assets                                                                           2,246,531                                 2,397,555

Total assets                                                                            16,803,194                 34,944         16,838,138

EQUITY AND LIABILITIES
Paid-up equity                                                                            6,924,044                                 6,924,044
Retained earnings                                                                           435,403                475,572            910,975
Minority interests                                                                           22,150                                    22,150
Equity                                                                                   7,381,597                                 7,857,169

 Provision for commitments                                                                  631,319                 66,878            698,198
 Interest-bearing long-term liabilities                                                   6,561,107             -4,701,500          1,859,607
Long-term liabilities                                                                    7,192,426                                 2,557,804

Interest-bearing short-term liabilities                                                                          4,701,500          4,701,500
Tax payable                                                                                 597,771                                   597,771
Other interest-free liabilities                                                           1,631,399               -903,955            727,445
Derivatives                                                                                                        396,448            396,448
Short-term liabilities                                                                   2,229,171                                 6,423,164
Total equity and liabilities   16,803,194   34,944   16,838,138
                                                           cont.
cont. Note 35: Transition to IFRS

Reconciliation of profit/loss for 2007                          NGAAP 2006            NGAAP 2007              Effect of                IFRS 2007
                                                                                                             transition
Amounts in NOK thousand                                                                                       to IFRS

Energy sales                                                           1,874,696             2,061,060                                     2,061,060
Revenues from power transmission                                       1,164,127             1,136,201                29,127               1,165,328
Telecommunication revenues                                               211,571               247,493                                       247,493
Other operating income                                                   303,662               344,316                                       344,316
Gross operating revenues                                              3,554,056             3,789,071                 29,127              3,818,198

Energy purchases                                                        -175,776              -156,899                                      -156,899
Transmission expenses                                                   -181,785              -191,146                                      -191,146
Cost of sales                                                           -247,463              -290,817                                      -290,817
Changes in value, energy contracts                                                                                  -142,932                -142,932
Net operating revenues                                                2,949,032             3,150,208              -113,805               3,036,403

Payroll expenses                                                        -428,857              -467,904                 -5,967                -473,871
Depreciation and write-downs                                            -526,771              -511,427                                       -511,427
Property tax and licence fees                                           -140,048              -168,178                                       -168,178
Other operating expenses                                                -331,873              -327,285                                       -327,285
Total operating expenses                                             -1,427,550            -1,474,794                 -5,967              -1,480,761

Operating profit/loss                                                 1,521,482             1,675,414              -119,771               1,555,642

Income from investments in subsidiaries                                     -466                -1,163                                        -1,163
Income from investments in associated companies                          172,067               211,840                -25,440                186,401
Financial income                                                         102,167                94,954                                        94,954
Financial expenses                                                      -433,033              -384,775                                      -384,775
Change in value, interest and currency contracts                                                                     160,422                 160,422
Net financial items                                                    -159,266                -79,144              134,983                  55,839

Pre-tax profit/loss                                                   1,362,216             1,596,270                 15,211              1,611,482

Tax expense on ground rent income                                                            -205,986                                       -205,986
Tax expense on profit etc.                                              -526,114              -397,354                -11,382               -408,736
Tax expense                                                            -526,114              -603,340                -11,382               -614,722

Profit/loss                                                             836,101               992,930                  3,829                996,759

Extraordinary income
Extraordinary expenses
Tax expense on extraordinary profit/loss
Profit                                                                  836,101               992,930                  3,829                996,759
Of which minority share                                                   -4,911                -8,032                                        -8,032
Of which the BKK Group's share                                           841,013             1,000,962                  3,829              1,004,791


Note a
Commitments relating to free power and annual payments of compensation are capitalised as long -term liabilities. The counter-item is material
assets. In addition, corrections have been made for the capitalisation of indirect expenses relating to the capitalisation of own hours.

Note b
The accounting figures for associated companies will be converted to IFRS. The changes relate in particular to the effect of financial derivatives
relating to power trading, currency trading and interest agreements being capitalised at fair value.

Note c
The correction concerns income surplus/shortfall. A description of the accounting differences between NGAAP and IFRS is given in note 1
Accounting principles.

Note d
Financial derivatives are capitalised at fair value under IFRS. Changes in value are recognised in the profit and loss accoun t during the period.
BKK has financial derivatives relating to power trading, currency and interest agreements.

Note e
Mainly consists of deferred tax relating to the IFRS changes, and long -term liabilities relating to watercourse rights, cf. note a.

Note f
Liabilities which fall due within 12 months are classified as interest-bearing short-term liabilities.

Note g
Allocated dividend is capitalised as a liability under NGAAP from the provision date. Pursuant to IFRS, allocated dividend is capitalised as equity
until it has been approved by the general meeting. It is then capitalised as a liability.




Note h
Specification of equity differences between IFRS and NGAAP

Amounts in NOK thousand


Equity in accordance with NGAAP 1 Jan. 2007                                                 7,347,261
Investments in associated companies                                                           -218,274
Dividend owed, not liability under IFRS                                                        745,172
Income surplus/shortfall is not capitalised under IFRS                                         -79,217
Capitalisation of own hours                                                                     -3,667
Fair value of interest derivatives                                                            -122,745
Fair value of currency futures                                                                 -17,886
Fair value of power contracts                                                                    9,578
Equity in accordance with IFRS 1 Jan. 2007                                                   7,660,221

The difference in equity under IFRS in relation to NGAAP                                       312,960

				
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