Düsseldorf Higher Regional Court confirms Bundeskartellamt decision on reduction of Berlin water prices

Today the Düsseldorf Higher Regional Court has rejected the appeal filed by Berliner Wasserbetriebe (BWB) against the Bundeskartellamt's decision of 4 June 2012. In this decision the Bundeskartellamt had ordered the utility to reduce its revenue (excluding taxes and duties) from the supply of drinking water in Berlin by 18% for 2012 and by 17% on average for the period 2013-2015, as compared to 2011 (see Bundeskartellamt press release of 05.06.2012).

Andreas Mundt, President of the Bundeskartellamt: "We are very pleased to note that the Düsseldorf Higher Regional Court has confirmed our decision after very complex abuse control and court proceedings. For customers in Berlin this means that they will be spared a total of approx. 250 million euros for the period from 2012 to 2015. Due to its immediate enforceability, the utility has already started to implement the decision. Credits for 2012 have already been granted and those for 2013 will be awarded in the course of this year. The Bundeskartellamt's order to reduce prices will now also become effective for tenants. In many cases landlords had refused to pay out the credits due to a lack of legal security. This year Berlin households will therefore profit from substantial credits for the past and also from lower advance payments for water bills in the future. The court's confirmation underlines the Bundeskartellamt's careful approach in abuse control proceedings in the water supply sector."

In substance the Düsseldorf Higher Regional Court has confirmed both the applicability of competition law and the Bundeskartellamt's concept (comparison of revenue excluding taxes and duties) as well as the authority's finding that revenues were excessive compared with those of comparable companies in Hamburg, Munich and Cologne. It also confirmed the authority's generous recognition of BWB's special expenses (incurred in particular for the restoration of the East Berlin water system). The reasons for the court's decision are not yet available.

BWB had already been unsuccessful in appealing against the applicability of competition law to Berlin water prices before the Cologne Administrative Court and the Münster Higher Administrative Court.

The utility can appeal the decision by the Düsseldorf Higher Regional Court on points of law to the Federal Court of Justice.