The European Commission has announced that it has opened formal proceedings in relation to possible breaches of Article 82 of the EC Treaty by Svenska Kraftnat (SvK), the Swedish electricity transmission system operator. The Commission is investigating whether SvK has abused its dominant position by restricting the amount of export transmission capacity on Swedish interconnectors allocated to neighbouring countries, thereby discriminating in favour of domestic customers and hindering the proper functioning of the electricity single market.

The investigation into SvK’s activities comes at a time when the Commission is taking a targeted approach to identifying where competition enforcement actions may be appropriate and effective, as a result of its January 2007 energy sector inquiry. Since this inquiry, the Commission has begun a number of investigations in the energy sector.