Proceedings initiated against RWE distribution network operators and EnBW Regional AG on account of abusive practices in the thermal electricity sector

The Bundeskartellamt has initiated abuse proceedings against RWE Rhein-Ruhr Verteilnetz GmbH, RWE Westfalen-Weser-Ems Verteilnetz GmbH and EnBW Regional AG on the suspicion that their terms for network access by third suppliers of thermal electricity are inappropriate. These proceedings were triggered by a complaint filed by the network-independent electricity trader BMR-Service GmbH.

The President of the Bundeskartellamt, Dr Böge, stated: “Even five years after the liberalisation in the electricity market consumers using night storage heating de facto have no possibility to switch to another electricity supplier. For a long time electricity network operators argued that this was due to a lack of adequate load profiles by which competing suppliers could feed thermal electricity into the network. The RWE distribution network operators and EnBW Regional AG have meanwhile developed terms for network access and load profiles for thermal electricity customers. However, in the Bundeskartellamt’s current view, these are impracticable and hinder or discriminate against new electricity suppliers.”

Among other reasons, the network operators justify their conditions for network access by claiming that they are in accordance with the German association of network operators’ practical guidelines for thermal electricity (RWE) and even set lower requirements (EnBW). However, even in the opinion of some municipal utilities, at which the guidelines’ recommendations are also directed, the implementation of these practical guidelines involves such considerable transaction efforts that transmission is impracticable. In addition, in the event of differences between the actual and predicted temperature, new suppliers of thermal electricity may incur substantial costs for expensive balancing energy. In this connection there are indications that new suppliers are being treated differently than the network operator’s own distribution companies. In view of the electricity sector’s many years of experience with thermal electricity the Bundeskartellamt is of the opinion that network operators can be reasonably expected to simplify their procedures and apply them in a non-discriminatory manner.