Bundeskartellamt issues warning to a further network operator on account of excessive fees for network use

The Bundeskartellamt intends to prohibit Thüringer Energie AG (TEAG), belonging to the E.ON group, from demanding abusively excessive fees for network use. This is the second warning issued in the course of the ten formal abuse proceedings relating to excessive fees for network use initiated at the end of January 2002. Oral proceedings are scheduled for 15 January 2003.

According to the President of the Bundeskartellamt, Ulf Böge, the Bundeskartellamt for the first time made use of its possibility (confirmed by the courts) to examine the cost calculation of the company concerned as well. The aim of all proceedings was to substantially reduce fees for network use which currently constitute the main obstacle to effective competition in the electricity markets.

The examination of the cost calculation of TEAG’s fees for network use, which was carried out on the basis of the criteria developed by the competition authorities in a working group report dated April 2001, provisionally confirmed the suspicion that TEAG charges abusively excessive fees for network use.

On the one hand, the examination has established indications that TEAG allocates unrelated costs to the network which, according to the Bundeskartellamt’s current opinion are not to be borne by the network users. Moreover, several imputed cost items are currently not accepted, even if TEAG uses them as a basis for its calculation in line with the principles on establishing prices provided by the Associations’ Agreement II plus (e.g. risk allowance). With the deduction of these cost items TEAG’s network costs, which form the basis for calculating its fees for network use, are reduced.

TEAG has until early January 2003 to comment on this matter. A formal decision could be issued after the oral proceedings on 15 January 2003.