Thursday, February 3, 2011
Posted by D. Daniel Sokol
Ulrich Scholz and Stephan Purps analyze The application of EU competition law in the energy sector.
ABSTRACT: The liberalisation of European energy markets has culminated in the adoption of the third energy package in 2009, which has led to intense implementation action by member states, national authorities, undertakings and European associations. Competition rules have been enforced mostly by ways of commitment decisions at European level while, at a national level, authorities investigated cases of market foreclosure, potential collusive behaviour and manipulations in wholesale markets. On a substantive point, the Commission considers that long term and large scale capacity reservation can amount to an abuse irrespective of the needs of the dominant company. That view is problematic for operators and does not seem compatible with current competition law principles.