The European Commission is reported to have issued
a Statement of Objections accusing German electricity network
operators of having a natural monopoly in their supply areas and a
dominant position which impedes the entry into the market of
foreign competitors. According to the Commission’s Statement
of Objections, the operators together control the entire network
and, therefore, jointly have a dominant position.
The Commission also criticises the new VV power
grid agreement which divides Germany into two trading areas and
charges a distance-related tariff for inter-zone or cross-border
supplies. In the Commission’s view, although this tariff is
intended to cover additional costs for long-distance transport, it
would lead in practice to an arbitrary allocation of costs and
unequal treatment of identical or similar transport.