1. Vienna economic talks Sofia, 4 April 2012 Liberalisation of the Energy Market Protection of Competition Dr. Theodor Thanner B UNDES W ETTBEWERBS B EHÖRDE

2. 2 Development Gas and Electricity Market  1985 Completing the internal market: White paper from the Commission to the European Council  1996 First Directive of EC concerning Liberalisation of electricity and gas  1998 First Austrian law on electricity (ELWOG)  2nd and 3rd European Package => 2nd and 3rd Evaluation of Austrian Law B UNDES W ETTBEWERBS B EHÖRDE

3. 3 Current situation  still few producers  still few market entries  still low changing mobility of consumers  grids – still lasting monopoly  still few transparency  still few information for consumers  but a lot of innovation (smart meter, electric vehicles)  and fast changing market B UNDES W ETTBEWERBS B EHÖRDE

4. Sector Inquiry BWB Start 2004: critical remarks from market players concerning liberalisation 786 requests of information were sent to customers, suppliers, network operators etc. expert interviews with a lot of market participants four studies were published (www.bwb.gv.at)  together with most market players a working package for the electricity industry was established 4 BUNDESWETTBEWERBSBEHÖRDE

5. Sector inquiry - Working package reduction of market entry barriers (information-exchange) working unbundling improvement for the customers: transparency of invoice, limited time period for supplier change, code of behaviour for the suppliers transparent pricing comprehensible invoices periodical monitoring Gas: expansion of transport and storage capacities long term contracts 5 BUNDESWETTBEWERBSBEHÖRDE

6. 6 Theoretical background - Abuse Art 102 Precondition:  Market power/dominance in the relevant market The Commission considers that an undertaking which is capable of profitably increasing prices above the competitive level for a significant period of time does not face sufficiently effective competitive constraints and can thus generally be regarded as dominant.  Abuse - Foreclosure ‘anti-competitive foreclosure’ is used to describe a situation where effective access of actual or potential competitors to supplies or markets is hampered or eliminated as a result of the conduct of the dominant undertaking whereby the dominant undertaking is likely to be in a position to profitably increase prices B UNDES W ETTBEWERBS B EHÖRDE

7. 7 Theoretical background - Agreement  Art 101: Prohibition of collusive conduct between two or more independent companies Exemption (agreement): Austrian Cartel Law:  participation/advantages for customers  technical or economical developement  increase of the production or distribution system Security of supply B UNDES W ETTBEWERBS B EHÖRDE

8. 8 Main problems and cases  Long Term Contracts  Comp/37542 Gas Natural, Endesa  Bundeskartellamt B8-113, E.ON Ruhrgas & Stadtwerke  K-241 STGW  Exclusivity and Destination Clauses  Comp/38085 Territorial Restrictions Austria, OMV, Gazprom  Refusal to supply and margin squeeze  Comp/ 37542, Gas Natural, Endesa  Rebates & invoices  Austrian sector inquiry B UNDES W ETTBEWERBS B EHÖRDE

9. 9 For introducing more Competition… 1.building awareness: discussion with EVUs 2.investigation and combating cartelS and Abuse of Dominance: case to case evaluation – no generalisation possible  if you have doubts, ask why you are doing things that way and keep in mind there are: Leniency programs B UNDES W ETTBEWERBS B EHÖRDE

10. 10 B UNDES W ETTBEWERBS B EHÖRDE Thanks for your attention! theodor.thanner@bwb.gv.at www.bwb.gv.at Twitter: BWB_WETTBEWERB