Bundeskartellamt prohibits Mainova AG from denying connection to its network

The Bundeskartellamt has prohibited the energy supplier Mainova AG, Frankfurt/Main, from denying GETEC net GmbH (GETEC net), Hanover, and Energieversorgung Offenbach AG (EVO) connection to its medium-voltage network.

Mainova AG supplies the city of Frankfurt with electricity. Its shareholders include the city of Frankfurt/Main and Thüga AG which belongs to the E.ON group. GETEC net and EVO depend on this network connection in order to be able to operate site network facilities on premises used for business or housing purposes and to supply end customers located there with electricity generated by the companies themselves or by third suppliers.

Both site network operators are entitled to have access to Mainova AG’s medium-voltage network (Section 19 (4) no. 4 of the ARC). In several other German cities distributing site networks are not operated by the local distribution network operator but by third companies. However Mainova AG refused the necessary connection to its medium-voltage network for several projects in Frankfurt and announced that it would continue to do so with regard to future projects.

According to the Bundeskartellamt the grounds given by Mainova AG to justify this conduct are not valid. The present proceedings are limited to newly developed sites or sites already operated by third parties. Consequently no additional network costs arise to Mainova AG nor is its existing customer structure negatively affected. Energy law provisions such as the general obligation to connect and supply under Section 10 of the Energy Industry Act (EnWG) provide no legal basis for Mainova AG to claim each new site for itself either. It was also the purpose of the amendment to the Energy Industry Act to create more competition for networks.

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The President of the Bundeskartellamt, Dr Böge, stated: “These proceedings are pilot proceedings for the issue of network connection of so-called site network operators and are thus of significance for the whole of Germany. After all, the establishment and operation of site networks represents a newly emerging market. Mainova AG is attempting to eliminate competition in this market from the outset. However, established network operators will have to face this competition in future. This will increase the efficiency of network operation and ultimately result in lower electricity prices for customers.”

Dr Böge went on to say: “Competition for networks is also provided for in the EU acceleration directive which forms the basis for the regulatory framework that is now to be created by the lawmaker in Germany. Hence efforts to politically enforce a comprehensive protection of network monopolies held by established network operators, which Mainova AG has declared it wishes to achieve through the Association of Municipal Enterprises (VKU), would also go against EU provisions.

The Bundeskartellamt’s decision can be appealed against at the Düsseldorf Higher Regional Court within a period of one month.

The decision will shortly be available on the Bundeskartellamt’s website at www.bundeskartellamt.de.