HomeIndustry SectorsEnergy EfficiencyGerman wholesale electricity market is unsatisfactory

German wholesale electricity market is unsatisfactory

The new German
federal cartel office
building in Bonn
Frankfurt, Germany — ESI-AFRICA.COM — 14 January 2011 – The big four utilities in Germany continue to have a dominant market position in each of their respective markets, hence the country’s wholesale electricity market remains unsatisfactory and needs to be monitored more closely.

This is the main finding of a study just published here by the German federal cartel office. The study investigated 80 companies and 340 power stations to establish whether there had been any abuses of market power in 2007 and 2008. The office said it supported the government’s plan to set up a market transparency unit to monitor the use of power stations more closely.

It confirmed that the big four “’ RWE; E.ON; EnBW; and Vattenfall Europe “’ continued to provide electricity to 80% of Germany’s wholesale market.

The big four have in the past been accused of holding back capacity to drive up prices, something they have always denied.

German federal cartel office chief Andreas Mundt  told a press conference in Bonn that there were no indications that the major electricity providers had systematically held back power capacity.

And German energy association president Hildegarde Mueller said there were no indications that any laws had been breached on the wholesale electricity market.

She added that with its 450 electricity providers, Germany enjoyed a variety unparalleled in any other EU country.