Brussels, 18/03/2009 (Agence Europe) - On Wednesday 18 March, the European Commission adopted a decision that renders legally binding commitments offered by RWE to address concerns raised in the course of an investigation under EC antitrust rules.
The Commission had initiated investigations into the German energy market in May 2006, as a follow-up to the energy sector competition inquiry. Antitrust proceedings against RWE were opened in May 2007. In the course of its investigation, the Commission came to the preliminary view that RWE might have infringed EC Treaty rules on the abuse of a dominant market position (Article 82), notably by two types of behaviour: firstly, RWE may have refused access to its network, notably by various means related to RWE TSO's capacity management. RWE may have pursued a strategy aimed at systematically keeping the transport capacity on its gas network for itself; secondly, RWE may have intentionally set its transmission tariffs at an artificially high level in order to squeeze RWE's competitors' margins. Such a 'margin squeeze' has the effect of preventing even a competitor as efficient as RWE from competing effectively on the downstream gas supply markets or limiting competitors' or potential entrants' ability to remain in or enter the market.
To address the Commission's competition concerns, RWE committed to divest its existing Western German high-pressure gas transmission network, including the necessary personnel and ancillary assets and services. Without control over the transmission network, RWE will no longer be able to favour its own supply business. The Commission also ensured that the purchaser of the network will have no incentives to favour its own supply business, since the network can only be divested to purchasers which do not give rise to prima facie competition concerns.
RWE will carry out the sale of its network under the supervision of a trustee. All buyers have to be approved by the Commission. (O.L./trans/rh)