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Image header Agence Europe
Europe Daily Bulletin No. 10903
Contents Publication in full By article 13 / 18
ECONOMY - BUSINESS / (ae) competition

Commission market-tests DB Energie's commitments

Brussels, 20/08/2013 (Agence Europe) - German railway incumbent Deutsche Bahn (DB) is trying to eliminate suspicions that it has abused its dominant position regarding the pricing system for traction current in Germany (in other words electrified current used to power locomotives). On 15 August, the European Commission invited comments from interested parties on the commitments by DB on its traction pricing.

DB Energie, the DB subsidiary providing traction current to railway companies, is the only traction current supplier in Germany. After an initial investigation, the European Commission voiced concerns in June that DB Energie's pricing system, and in particular discounts that only railway companies of the DB Group can achieve fully, may have hampered the development of competition on the markets for rail freight and long-distance passenger transport, in breach of EU antitrust rules. Deutsche Bahn offered a number of commitments to allay these concerns, including the introduction of a new pricing system for traction current that would apply uniformly to all railway companies and should enable other electricity providers to directly supply traction current to railway companies. DB Energie would apply a single price for electricity without volume or duration-based discounts, and DB Energie would pay non-DB railway companies a one-time retroactive refund of 4% of their latest annual traction current invoice. Moreover, DB would provide the Commission with the necessary data to assess if the price levels charged by DB under the new pricing system would lead to a margin squeeze.

The Commission decided on 15 August to invite comments from stakeholders about the DB commitments. If they believe the commitments would resolve the issues raised by the Commission, the latter may decide to make them legally binding. (MD/transl.fl)