Brussels, 20/03/2002 (Agence Europe) - The European Commission has cleared, subject to conditions, an agreement giving Energie Baden-Württemberg (EnBW), Electricidade de Portugal S.A. (EDP) and Caja de Ahorros de Asturias (Cajastur) joint control over Spain's fourth largest utility company Hidroeléctrica del Cantábrico (Hidrocantábrico). As in the recent bid for the Spanish company by EnBW and Grupo Villar Mir, the operation would have led to the strengthening of the existing collective dominant position on the Spanish wholesale market for electricity. Offers to buy out Hidrocantábrico had been submitted on three occasions last year and authorised by the Commission. The bids were presented respectively by EDP/Cajastur/Compañía de Seguros y Reaseguros (Cáser), RWE and EDF-RTE, Villar Mir and EnBW through the acquisition vehicle Ferroatlántica In December 2001, the members of the two bidding consortia, namely EnBW, EDP, Cajastur and Cáser entered into a Shareholders' Agreement according to which EnBW, EDP and Cajastur, following acquisition of the shares currently held by Ferroatlántica, Cáser will remain a minority (non-controlling) shareholder. As with the previous examination of the Villar Mir/EnBW bid, the Commission established that the main competition concern laid with the scarce commercial capacity on the French-Spanish interconnector which creates a barrier to electricity imports into Spain and results in the isolation of the market. The Commission's fear was that once it had gained a foothold in Spain and with access to Hidrocantabrico's electricity generation capacity, EDF (which controls 34% of EnBW) would be likely resist any substantial increase in the capacity of the interconnector (see EUROPE 27 September page 13). In order to solve these concerns, EDF and the French grid operator, EDF/RTE have resubmitted the same commitments proposed in the EnBW/Villar Mir case, namely they will take all the necessary steps in order to increase the commercial capacity on the interconnector which transmits electricity across the Pyrenean chain to about 4,000 MW from an existing 1,100 MW. This should allow electricity imports from other European importers onto the Spanish market become more dynamic, creating wider choice and more attractive prices for customers.