An estimated third of all German power companies are considering mergers or joint ventures. The largest of the potential mergers is between Viag and Veba, two of the eight major grid operators. Details of the deal are still under negotiation as of October 1999. Smaller companies and new entrants to the market complain that the market is not yet completely liberalized, as the major grid operators and regional supply companies make it difficult for consumers to change suppliers. U.S.-based Enron, for instance, claims that the current grid access agreement does not allow it to offer competitively priced electricity.
Electricity is clearly on the path toward commoditization.
Spot markets have developed, whereas prior to liberalization long-term contracts were the norm. New power exchanges are planned for Frankfurt, Hanover, Dusseldorf, Leipzig and Berlin, and the development of a futures market is underway. German imports from Russia have remained unchanged in recent years. However, OPEC's share of German imports has decreased, while the share of North Sea oil from Norway and the United Kingdom has increased. The pump price for gasoline is about three times higher in Germany than the United States.