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Image header Agence Europe
Europe Daily Bulletin No. 9135
Contents Publication in full By article 20 / 34
GENERAL NEWS / (eu) eu/energy/competition

Increased energy prices will lead to consolidation into three dominant groups, predicts Eon Chief Executive

Brussels, 20/02/2006 (Agence Europe) - Identified by the Commission enquiry as one of the deficiencies in the liberalisation of energy in Europe, the high degree of concentration in this sector could be further strengthened to the advantage of the former monopolies, said Wulf Bernotat, chief executive of German firm Eon, in an interview with the Financial Times on Monday. Worried by operator practices and determined to counter any abuse of dominant position, the Commission is also concerned about price fixing and market distortion (see EUROPE 9133). Gas price increases will continue, predicts Mr Bernotat, who warns, “We have to be prepared that energy will become scarcer and therefore more expensive … there are ever fewer gas producers while at the same time worldwide demand is growing”. According to Mr Bernotat, “at the end of this (consolidation) process there will be a small number of energy companies that play a European-wide role. I think that Enel, EDF and Eon will belong to this leading group”.

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