The European Commission (Commission) has expressed concerns that E.ON is abusing its dominant position in the German wholesale electricity market. In particular, the Commission is looking into complaints that generation capacity is being withheld, resulting in higher electricity prices and deterring third parties from investing in new electricity generation. A further concern relates to E.ON’s conduct as a transmission operator in relation to balancing electricity. These include allegations that E.ON is favouring its own production affiliate and increasing prices to customers. Following discussions with the Commission, E.ON has agreed to make certain commitments including divesting its generation capacity in Germany from different types of fuel and technology and divesting part of its transmission business. The Commission is “market testing” the proposed commitments by seeking comments from affected parties, before confirming acceptance of them by adoption of a “commitments decision” under Article 9 of Regulation 1/2003.
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Commission concerns over E.ON’s German electricity market
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