WRITTEN QUESTION E-0001/00

by Brigitte Langenhagen (PPE-DE) to the Commission

(19 January 2000)

Subject: Implementation of access to the grid under EU Directive 96/92/EC of 19 December 1996 transmission conditions for independent power suppliers

The conditions governing access to the grid in Germany are currently being examined to see whether they are compatible with the internal market rules.

1. Is the objective of Directive 96/92/EC(1), namely to give power suppliers non-discriminatory access to the grid, achieved by agreements on transmission fees between German power corporations and interest groups?

2. What fees are regarded as compatible in a Union context?

3. How does the Commission assess the actual cost structures of the grid operators; does it, for example, require them to disclose these structures?

4. Does the Commission not agree that unjustifiably high fees offer scope for cross-subsidisation and the shifting of costs in integrated electricity undertakings, and thus distortion of competition?

5. Does it not share the view that, through the level of fees they charge, old-established energy supply companies might take advantage of their natural monopoly grid to exclude new competitors as far as possible?

6. What does the Commission intend to do to ensure that new power suppliers have free and transparent access to the market?

(1) OJ L 27, 30.1.1997, p. 20.

Answer given by Mrs de Palacio on behalf of the Commission

(1 March 2000)

1. The Commission has made a first analysis of the Verbaendevereinbarung (VV) to which the Honourable Member refers. The Member of the Commission responsible for competition wrote to the German associations describing the findings. The letter contains a number of elements, particularly with respect to the potential discrimination that results and which raises serious issues of compatibility with the competition rules of the EC Treaty. The Director-general for energy and transport wrote to the German authorities outlining the potential non-conformity of some aspects of the VV with Directive 96/92/EC of the Parliament and the Council of 19 December 1996 concerning common rules for the internal market in electricity.

2. In the framework of the Florence Regulatory Forum where Member States, regulators, the Association of European transmission system operators (ETSO), consumers and industry are represented, agreement has been reached that transmission fees giving access to the interconnected Community network will be independent of the commercial transactions in which the network users may engage. These fees should therefore not be based on individual transactions, but should be based on a calculation of the effective use of the network, the net physical flows.

3. Directive 96/92/EC obliges transmission system operators (TSOs) either to publish the tariffs for access to the network, where regulated third party access exists, or to publish indicative tariffs for the use of the network in the case of negotiated third party access.

4. The Commission agrees with the Honourable Member and insists on fees being non-discriminatory. Under Article 7,5 of the Directive TSOs may not discriminate between users of the network, particularly in favour of their shareholders or subsidiaries.

5. The Commission agrees and has pointed out this risk of abuse of dominant position on the part of the incumbent German electricity utilities in the letters that have been sent.

6. As mentioned under 1) the Commission has outlined its doubts as to the conformity of some aspects of the Verbaendevereinbarung with the Electricity Directive, and its doubts as to compatibility with the competition rules of the EC Treaty. It is clear the VV must guarantee a free and transparent market access to all players.