The Bundeskartellamt has initiated investigatory proceedings against 22 electricity network operators on suspicion of their charging abusively excessive fees for network use and of impeding other electricity providers.  The President of the Bundeskartellamt, Dr Böge, stated: “Considerable differences in network use fees give grounds for suspicion that the fees charged by these companies are inappropriate and would most probably be considerably lower if effective competition were in place."

The companies contacted in the course of the preliminary proceedings include public utilities, regional providers and grid companies with network areas covering several Länder.

Comparisons made on the basis of a survey of network use fees for industrial and commercial consumers conducted by the Federal Association of Energy Consumers (VEA) show that the fees charged by the 22 companies concerned are between 10 per cent and 80 per cent higher than those charged by the network operators taken as a comparison, for example, RWE and Energie Baden-Württemberg. Comparisons in the tariff customer sector produce differences of up to 30 per cent.

According to Böge the Bundeskartellamt sees the scale of difference as a clear indication of abusive fee-structuring. It could not be ruled out that the differences might be even more significant if, were the overall domestic price level found to be excessive, foreign companies were included in the comparison.

The Bundeskartellamt is also examining whether the network owners impede third electricity providers by cross-subsidizing the procurement and distribution of electricity via charges for network use. This would be the case if the fees for network use charged to the competing electricity providers are not set at a sufficiently low level below the package offers of the network owners.

The relevant companies have four weeks to give their comments on this. Should the evaluation of the required information confirm the initial suspicion of abusively excessive charges, formal abuse proceedings will be initiated against the companies. Corresponding proceedings are already in place against e.dis Energie Nord AG operating in Brandenburg and Mecklenburg-Western Pommerania.

The President of the Bundeskartellamt, Dr Böge, stated: "Barely two months after the new 11th Decision Division was set up we have already launched a large-scale operation to take action against electricity companies which are possibly charging excessive fees for network use. This should send out a clear signal to all network owners in Germany that we shall not tolerate inappropriate charges for network use. In close coordination with the competition authorities of the Länder we will take consequent action against all impediments and safeguard competition in the electricity sector."

The Bavarian competition authority recently initiated a survey of network use fees charged by 20 electricity suppliers in Bavaria. Respective investigations are also in operation in Hesse, Lower Saxony and Mecklenburg-Western Pommerania and formal abuse proceedings have even been initiated in one case in Baden-Württemberg. Competition authorities of other Länder are also expected to start preliminary proceedings soon.

The action taken by the Bundeskartellamt and the competition authorities of the Länder is based on the report of the competition authorities’ working group on electricity network use, issued in April 2001[1].  This defines the legal criteria for the assessment of network use fees and other barriers to network access.

[1] See www.bundeskartellamt.de/nachrichten.html