Brussels, 18/06/2002 (Agence Europe) - The European Commission has authorised the Spanish firms Canal de Isabel II and Hidroelectrica del Cantabrico to form a joint venture responsible for developing, for both partners, activities in the production, distribution and provision of electricity in the region of Madrid. Canal de Isabel II is a state-owned company belonging to the region of Madrid, present in water cleansing and supply sectors in the region. Through its subsidiaries, it also exercises activities, in the same region, in the provision of telecommunications and electricity services. For its part, Hidroelectrica del Cantabrico is controlled by Electricidade de Portugal, EnBW and Caja de Ahorros de Austurias. Its main activities comprise the production and supply of natural gas in Austurias and the provision of telecommunication services in this same region as well as Castilla y Leon. The Commission considers that this operation will not lead to an important overlap in activities on the electricity market, be it wholesale or retail. As for the possible provision of electricity, water, gas and telecommunications, the low market share of Hidroelectricabrico on the market for the provision of gas and electricity and the presence of strong competition rules out any possibility of creating a dominant position.