Brussels, 01/06/2001 (Agence Europe) - The European Commission opened the second phase of the investigation into the offer made by the German company Energie Baden-Wurttenberg (EnBW) to takeover Hidrocantabrico, in conjunction with the Villar Mir group, feeling that there exist serious doubts over a dominant position on the Spanish market for electricity. The Commission decision is not foreign from the fact that EnBW is presently 34% held by EDF (Electricite de France), which has joint control with OEW, which would automatically give more power to the French group in the Spanish market for the production of electricity. The Commission fears that if EDF manages to gain a significant presence on the Spanish market, it could have no more interest in increasing the interconnection capacity between France and Spain, already limited capacity, isolating the Spanish Market and due to this constituting an obstacle to imports from other European countries, and is, at present, the main foreign competitor on the Spanish market and is also the owner of the French network and the interconnection s with France. All the electricity imports towards Spain (with the exception of those from Portugal) must thus pass through the French network and the French interconnection connections. Commissioner Monti recalled on this occasion that his services would investigate at the same time, in order to know whether EDF would have exercised discrimination towards third countries with regards to access to France-Spain interconnection cables. While awaiting a decision from the Commission, Spain has taken to lead with the adoption of a provision limiting the voting rights of the majority shareholders in these companies, provision targeting EDF. This provision, as well as the decree-law recently adopted by the Italian authorities, aiming to push back the danger of an EDF control over the Montedison electricity company, are the object of an examination procedure, separate from that mentioned above, by the Commission's DG Internal Market, in order to determine whether these provisions respect the European rules on the free movement of capital and the right to establishment (see EUROPE of 1 June, p.15 and 28 and 29 May, p.9).