The Bundeskartellamt has instituted abuse proceedings against electricity network operators

The Bundeskartellamt has instituted abuse proceedings against 10 electricity network operators on account of their charging excessively high fees for network use. The companies involved include the regional suppliers Avacon AG, Helmstedt, and TEAG Thüringer Energie AG, Erfurt, belonging to the E.ON group and Energie Aktiengesellschaft Mitteldeutschland EAM, Kassel (46 pct owned by E.ON) as well as the regional suppliers envia Sachsen Brandenburg AG, Chemnitz and Mitteldeutsche Energieversorgung AG (MEAG), Halle, belonging to the RWE group. Also involved are the regional suppliers Elektrizitätswerk Wesertal, Hameln, as well as HEAG Versorgungs AG, Darmstadt, and Stadtwerke (municipal utilities) Mainz, Lindau and Lauenburg.

The Bundeskartellamt has instituted abuse proceedings against 10 electricity network operators on account of their charging excessively high fees for network use. The companies involved include the regional suppliers Avacon AG, Helmstedt, and TEAG Thüringer Energie AG, Erfurt, belonging to the E.ON group and Energie Aktiengesellschaft Mitteldeutschland EAM, Kassel (46 pct owned by E.ON) as well as the regional suppliers envia Sachsen Brandenburg AG, Chemnitz and Mitteldeutsche Energieversorgung AG (MEAG), Halle, belonging to the RWE group. Also involved are the regional suppliers Elektrizitätswerk Wesertal, Hameln, as well as HEAG Versorgungs AG, Darmstadt, and Stadtwerke (municipal utilities) Mainz, Lindau and Lauenburg.

The President of the Bundeskartellamt, Ulf Böge, stated: “Even the preliminary proceedings which the Bundeskartellamt instituted against 22 electricity network operators in late September 2001 had some effect, i.e. some of the companies involved reduced their fees for network use by up to 20 pct. That notwithstanding, initial investigations confirmed the suspicion of abusively excessive fees for network use against the 10 companies mentioned.  Even after partial reductions their fees still exceeded those of comparative companies by 30 to 70 pct. According to a preliminary evaluation this deviation cannot be justified by differences in the local structures of the network operators or special conditions in the new Länder.”

For reasons of competence (no distribution networks covering more than one Land), the Bundeskartellamt has referred some of the preliminary proceedings to the respective Land cartel authorities.  In all these cases the companies involved are municipal utilities which have favourable structural conditions but charge very high fees for network use. Particularly remarkable were the Stadtwerke (municipal utilitites) Bonn which, considering their favourable regional structure, are charging the most excessive fees for network use of all energy suppliers examined. For reasons of competence this case was referred to the Land cartel authority of North-Rhine/Westphalia.

Conversely the Bundeskartellamt has taken over and will continue the abuse proceedings against Allgäuer Überlandwerke, Kempten, which operate in various federal Länder, from the Bavarian cartel authority. According to Mr Böge concerted action taken jointly with the cartel authorities of the Länder is a major factor in effective abuse control in the energy sector. In this way it would be possible to ensure more extensively that all customers in the energy sector are able to benefit from the advantages of liberalisation. Mr Böge counts on the signal given by these proceedings to be taken seriously by all network operators. Mr Böge stated: “I would welcome it if our efforts to safeguard competition would be supported as soon as possible by introducing statutory immediate enforceability of decisions relating to cartel law. The pending amendment of the Energy Industry Act provides a good opportunity for this.”

The President of the Bundeskartellamt, Ulf Böge, stated: “Even the preliminary proceedings which the Bundeskartellamt instituted against 22 electricity network operators in late September 2001 had some effect, i.e. some of the companies involved reduced their fees for network use by up to 20 pct. That notwithstanding, initial investigations confirmed the suspicion of abusively excessive fees for network use against the 10 companies mentioned.  Even after partial reductions their fees still exceeded those of comparative companies by 30 to 70 pct. According to a preliminary evaluation this deviation cannot be justified by differences in the local structures of the network operators or special conditions in the new Länder.”

For reasons of competence (no distribution networks covering more than one Land), the Bundeskartellamt has referred some of the preliminary proceedings to the respective Land cartel authorities.  In all these cases the companies involved are municipal utilities which have favourable structural conditions but charge very high fees for network use. Particularly remarkable were the Stadtwerke (municipal utilitites) Bonn which, considering their favourable regional structure, are charging the most excessive fees for network use of all energy suppliers examined. For reasons of competence this case was referred to the Land cartel authority of North-Rhine/Westphalia.

Conversely the Bundeskartellamt has taken over and will continue the abuse proceedings against Allgäuer Überlandwerke, Kempten, which operate in various federal Länder, from the Bavarian cartel authority. According to Mr Böge concerted action taken jointly with the cartel authorities of the Länder is a major factor in effective abuse control in the energy sector. In this way it would be possible to ensure more extensively that all customers in the energy sector are able to benefit from the advantages of liberalisation. Mr Böge counts on the signal given by these proceedings to be taken seriously by all network operators. Mr Böge stated: “I would welcome it if our efforts to safeguard competition would be supported as soon as possible by introducing statutory immediate enforceability of decisions relating to cartel law. The pending amendment of the Energy Industry Act provides a good opportunity for this.”