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Image header Agence Europe
Europe Daily Bulletin No. 8366
Contents Publication in full By article 17 / 38
GENERAL NEWS / (eu) eu/competition

EnBW and ENI may take over GVS (gas)

Brussels, 19/12/2002 (Agence Europe) - After a detailed investigation, the European Commission authorised, subject to certain conditions, the German electricity company Energie Bade-Würtemberg (EnBW) and the Italian company ENI, active in the exploration and production of oil and natural gas, to take over joint control of the regional German gas distributor, Gas Versorgung Süddeutschland (GVS). As notified, the operation would have strengthened the dominant position of GVS on the gas distribution market in Baden-Wurtemberg in so far as EnBW holds shares in many local gas distributors. The operation would therefore have resulted in providing an incentive for EnBW to direct the demand of these distributors to GVS, thus ensuring it has control over the latter. GVS is already well established in the Land, controlling approximately 90% of the market for regional gas wholesale supply in Baden-Württemberg compared to the 10% shared between Ruhrgas and Wingas. In order to resolve these problems, EnBW and ENI have pledged to grant all local gas distributors the possibility for early termination of long-term supply contracts signed with GVS or EnBW subsidiaries. These commitments would thus free large potential demand and promote other gas distributors.

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