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Europe Daily Bulletin No. 8405
Contents Publication in full By article 14 / 40
GENERAL NEWS / (eu) eu/competition/energy

E.ON/Ruhrgas incites many worries in UK

Brussels, 20/02/2003 (Agence Europe) - Amelia Torres, spokesperson for Commissioner Monti stated on Thursday, that the European Commission would be examining the agreements concluded between E.ON and rival energy groups, which opposed the merger with Ruhrgas, in order to check whether they are not anti-competitive via the merger agreement authorised by Bundeskarllamt, the German Competition Office, as the Combined E.ON and Ruhrgas turnover thresholds have not been reached for necessitating the Commission to assume the role of competent authority. The German authorities authorised the merger in July 2002 to the great displeasure of the nine competitor energy groups, which decided to lodge a complaint. Several weeks ago, when the Düsseldorf Court was preparing to endorse them, E.ON was able to persuade them to withdraw their complain, following several concessions. The non-interference of the European Commission in the case was sharply criticised, notably by the British, who feared repercussions on their market (see EUROPE 6 February p 16). Callum McCarthy, Director General of OFGEM, the British government regulator of the energy markets, recently wrote to Commissioners Monti and de Palacio about it in the belief that "deals such as the one between E.ON and Ruhrgas are against the spirit of competition and serve to slow the liberalisation process". Ms Torres affirmed that they were aware that this was not appreciated by everybody but it was not up to the Commission to decide and that the rules were clear - thresholds existed. Last Tuesday during a meeting f the EP Economic and monetary Committee, Luxembourg Green, Claude Turmes, questioned Mr Monti on the liberalisation of the energy markets, asking him where equal opportunities for sector operators were really genuine. Mr Monti replied that the Commission was not the competent authority on this case but had followed it with much interest and was aware that merger repercussion could go beyond German borders. He indicated that they had agreed with the German authorities to co-ordinate their activities to avoid all complaints concerning concessions made by E.ON. Mr Turmes explained that he would also ask how he could be expected to react to the EDF, Gaz de France merger, which posed the same kind of problem. Mr Monti replied that as far as he knew, nothing had been proposed but if this were the case the Commission would certainly examine the case

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