Gas price proceedings concluded – consumers spared € 444 million

The Bundeskartellamt has concluded its proceedings initiated in 2008 against 30 gas suppliers (cf. Bundeskartellamt press release of 1 December 2008 and case summary of 27.08.2009). Extensive examinations have shown that all the companies have fulfilled their commitments. Customers have been spared approx. € 444 million via reimbursements and the non-implementation of price increases.

The President of the Bundeskartellamt, Andreas Mundt, stated: “Our gas price proceedings have spared consumers costs in the range of approx. € 444 million, both directly in the form of reimbursements and indirectly through the non-implementation of price increases. In the meantime first signs of competition have also become apparent in the gas markets. Consumers should make full use of the existing possibilities to switch to another provider in order to increase the pressure on suppliers.”

In 2008 the Bundeskartellamt initiated proceedings against a number of gas suppliers on the suspicion of their charging abusively excessive prices. The agency decided to agree with the companies on far-reaching commitments in order to bring the proceedings to a close. In contrast to a formal decision, the advantages achieved by this course of action were of direct benefit to consumers.

The commitments offered by the gas companies envisaged that customers be reimbursed with a total of € 130 million for 2007 and 2008 and that these reimbursements should not be subsequently compensated for in 2009 in the form of price increases (so-called no repeated game clause). The Bundeskartellamt’s evaluation has now shown that all the companies have abided by their no repeated game clause. In 2008 and 2009 the companies did not pass on to consumers increased costs totaling € 314 million (in particular, higher network use fees and gas procurement costs) or implemented price reductions which even exceeded savings from lower gas procurement costs in 2009.

Fears that a blanket action by the Bundeskartellamt could deter newcomers from entering the market have proved unfounded. In fact, competition for gas customers gained significant momentum in 2009. An assessment of the market has revealed that a number of new companies have entered the market. Consumers are making increasing use of existing possibilities to switch to another supplier because of the greater product diversity and savings potential.