Brussels, 20/04/2007 (Agence Europe) - Following the disconcerting results of the sectoral investigation into the energy market (see EUROPE 9341), an in-depth study, carried out by an independent consultant and published by the Commission on 20 April, has confirmed that wholesale electricity prices in several member states are “significantly higher than would be expected on perfectly competitive markets”. The results of this study, based on a unique database of more than one billion data points, could be used as the basis for anti-trust procedures launched either by the Commission or directly by member states.
The report analyses the markets of Belgium, Germany, Spain, France, the Netherlands and the United Kingdom from 2003 to 2005. The first part reveals the concentration of the majority of markets, shown by the limited number of operators competing effectively with one another in most markets. The second part of the study determines that there was a “mark-up” between what the price of the market was in the period and what it would have been if the markets had been perfectly competitive. It is also noted that, although the correlation is not exact, higher mark-ups usually mean higher profits. The third part of the study looks at the tendency of mark-ups to rise when the number of operators falls, and the apparent tendency among some operators not to use their full production capacity.
Jonathan Todd, spokesman for the competition commissioner, is not surprised. “These results reinforce the sector enquiry,” he told press. “Where appropriate, the Commission may use these results to pursue anti-trust cases (as it has already done with Germany), it may encourage national authorities to take action themselves”. (cd)