Excessive water prices – Wuppertal municipal utility has to refund 15 million euros to customers

On account of the excessive water prices charged by the Wuppertal municipal utility, the Bundeskartellamt has agreed a settlement with WSW Energie und Wasser AG, by which the latter will refund 15 million euros to its water customers. From 2009 up to the end of April 2013 WSW's water prices lay well above those charged in comparable supply areas.

Andreas Mundt, President of the Bundeskartellamt: "In order to draw a line under the very complex proceeding we have agreed with the Wuppertal municipal utility on a refund of 15 million euros for consumers in Wuppertal. The conditions for water supply in Wuppertal are admittedly more difficult than in other regions. Nevertheless, even after considering these special circumstances we had to assume that prices were excessively high. The refund is to be paid out to customers of the waterworks during the period of overpricing by the middle of next year. The case shows how important and effective abuse control under competition law can be in the water sector."

During the examination proceeding the water prices in Wuppertal were compared with those in Bochum, Bonn and Duisburg. However, the conditions for water supply in Wuppertal are especially difficult (due among other things to differences in altitude in the city, several dams and waterworks, reserve capacities, population decline) and in the Bundeskartellamt's opinion justified some elements of the excessive prices. Due to considerable and persistent differences of opinion with the WSW on a large number of issues and in order to avoid a long-term legal dispute, both parties have agreed that water customers in Wuppertal be refunded to the amount of 15 million euros. This amount is to be paid out to customers of WSW during the period of overpricing by 30 June 2016 in the form of crossed cheques. In return the Bundeskartellamt agreed to close the administrative proceeding.

Since the initiation of the Bundeskartellamt's examination proceedings the city of Wuppertal has remunicipalised its water supply services. Since the beginning of May 2013 charges for water are levied by a municipal undertaking operated by the city itself. As abuse control under competition law does not extend to charges/fees for services provided by an entity under public law, the Bundeskartellamt was unable to order price reductions for the future.