German electricity network operators

United Kingdom

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.