Bundeskartellamt warns Mainova AG on account for denying connection to its network

The Bundeskartellamt intends to prohibit the energy supplier Mainova AG, Frankfurt/Main, from denying GETEC net GmbH (GETEC net), Hanover, and Energieversorgung Offenbach AG (EVO), Offenbach, connection to its distribution network (medium-voltage level). Mainova AG is a regional energy supplier for Frankfurt/Main and neighbouring municipalities. Its shareholders include the city of Frankfurt/Main and Thüga AG which belongs to the E.ON group.

GETEC net and EVO depend on this connection in order to be able to operate network facilities on property sites with commercial and residential buildings (property sites) and supply end customers connected to these networks with low-voltage electricity generated by the companies themselves or by third suppliers.

According to the Bundeskartellamt’s current view, site network operators are entitled under Section 19 (4) no. 4 of the ARC to have access to Mainova AG’s medium-voltage network. While in various other cities a number of local distributing site network facilities are run by third parties rather than by the local distribution network operator, Mainova AG refuses the necessary network connection in its network area.

Mainova AG is thus suspected of abusively using its local monopoly position as the supplier of network connection and access services by attempting to eliminate emerging competition for the establishment/leasing and operation of site network facilities in its network area.

The Bundeskartellamt’s proceedings focus on the new development of property sites. New network facilities are set up exclusively at the cost of the property owner or the site network operator. This does not incur any additional network costs for Mainova AG nor is the existing customer structure negatively affected. Therefore Mainova AG’s argumentation is not comprehensible, according to which site network operators are only picking out economically attractive objects for connection (low network costs and high electricity consumption) which raises Mainova’s own fees for network use in turn leading to an increase in general electricity tariffs for all those network customers not connected to a site network.

According to the Bundeskartellamt’s current view, a site network operator is not only entitled to be connected to Mainova AG’s medium-voltage network but is also under an obligation to connect and supply within the meaning of Section 10 of the Energy Industry Act.

The oral hearing will take place on 3 September 2003.

The President of the Bundeskartellamt, Dr Böge, stated: “With the liberalisation of energy markets the lawmaker in principle also opened up competition for the establishment and operation of networks. Competition improves network operation efficiency and results in low electricity prices for customers. For local distribution network operators this can mean that they have to face not only competition for the supply of electricity customers in their supply area but also for the establishment and operation of new networks to supply these customers.”