Brussels, 11/06/2003 (Agence Europe) - Following a detailed investigation, the European Commission has, subject to conditions, given a green light to Austrian electricity merger. The operation involves a link-up between the Austrian power company Österreichische Elektrizitätswirtschafts-AG (Verbund) and five Austrian regional power suppliers grouped together as EnergieAllianz, whose activities involve electricity trade and supply to large industrial customers with an annual consumption exceeding four gigawatt-hour (GWh). The two parties will then supply their electricity via two newly created joint ventures, APT and E&S. The initial plan (known as the "Austrian power solution" or ÖSL in German) would have created or strengthened dominant positions, especially on the market for the supply of electricity to large customers at the expense of small distributors and clients in Austria. But the parties have entered into significant commitments which fully resolve the Commission's concerns. One of these commitments: Verbund will sell its 55% shareholding in APC, a company that deals with large customers and has a share of around 10 to 15% of the Austrian market. The Commission will also have to approve the buyer in this transaction. Until the end of 2007, Verbund undertakes not to exercise important voting rights it holds in the Styrian regional supplier Steweag-Steg, which is controlled jointly by EdF and the Land of Styria. Energie AG Oberösterreich, one of the five regional distributors, will likewise refrain until the end of 2007 from exercising its voting rights in the Salzburg regional supplier SAG. As regards the supply to small customers, the approval of the transaction is subject to the condition that a volume of electricity totalling 450 gigawatt-hours, structured in line with the consumption profile of small Austrian customers, and including 50% hydroelectricity, is to be auctioned each year until July 2008. This is intended to increase liquidity, so as to encourage entry to and expansion on the Austrian small customers market and to improve the range of sources open to small distributors. Verbund has also undertaken to sell the shares it still holds in the new suppliers in the area of small customers, MyElectric and Unsere Wasserkraft. Commissioner Monti welcomed the positive outcome to this case which, "allow creation of another powerful player, especially in view of the upcoming liberalisation of the European energy market, whilst at the same safeguarding consumer interests in Austria".