Bundeskartellamt and ENTEGA conclude settlement on prices for electricity for heating purposes for 2007-2009

03.11.2015

The Bundeskartellamt has concluded by settlement its proceeding against ENTEGA Energie GmbH, Darmstadt. The proceeding was initiated against the company on account of the high level of prices it charged for electricity for heating purposes. In a settlement agreement under public law ENTEGA has undertaken a commitment to the Bundeskartellamt to reimburse its electric heating customers in the period from 2007 to 2009 with 155.72 euros (incl. VAT and interest).

In September 2009 the Bundeskartellamt had initiated proceedings against various electric heating providers on account of abusive pricing. With the exception of the proceeding against ENTEGA all other electric heating proceedings were already settled in the autumn of 2010 (see press release of 29 September 2010). In March 2012 the Bundeskartellamt ordered ENTEGA to make reimbursement payments to its customers (see press release of 20 March 2012). Since then ENTEGA's appeal against this order has been pending at the Düsseldorf Higher Regional Court. Both the outcome of the court case as well as its duration were unforseeable. In the Bundeskartellamt's view it was therefore not in the interests of the customers affected to continue with the proceeding.

The settlement also takes account of the positive development of competition on the electric heating market in the past few years. Andreas Mundt, President of the Bundeskartellamt: "As a competition authority we carry out proceedings on abusive pricing where we have customers with no possibilities to switch supplier. However, changing an electric heating supplier today is much easier than it was five years ago. Much has happened in the market since. The offer of electric heating suppliers active throughout Germany has increased and there is more transparency for customers. Consumers can now find local suppliers easily, e.g. via internet portals, consumer magazines or information from consumer organizations."

The settlement has now ended the legal dispute. ENTEGA will pay out around 50% of the refund amount designated in the original order to customers of the company in the period of overpricing. In return the Bundeskartellamt has lifted its ruling on abusive practices of 19.3.2012. ENTEGA will inform the customers concerned in writing about the modalities of payment by the end of February 2016. Further information on this can be found in the Bundeskartellamt's case summary of 3 November 2015 (available only in German).

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