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Extracts from the press briefing by Jonathan Todd, spokesperson of Neelie Kroes, on the opening of German electricity market to competition

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Jonathan Todd, Spokesperson of Neelie Kroes, Member of the EC in charge of Competition, gave a press conference to announce the opening of the German electricity market to competition. The European Commission adopted a decision that renders legally binding commitments offered by E.ON to address concerns raised in the course of an investigation under EC Treaty rules prohibiting the abuse of a dominant market position. The European Commission had concerns that E.ON may have withdrawn available generation capacity from the German wholesale electricity markets to raise prices, and have deterred new investors in generation. Furthermore, the European Commission had concerns that E.ON may have favoured its production affiliate for providing balancing services, while passing the resulting costs on to final consumers, and prevented other power producers from exporting balancing energy into its transmission zone. Subsequently, E.ON offered to divest around 5 000 MW of its generation capacity to address the concerns regarding the generation market. E.ON also committed to divest its extra-high voltage network to meet the concerns on the electricity balancing market. In the light of the commitments offered by E.ON, the European Commission has now closed its investigation.
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Type: EbS   Reference: 60573   Date: 26/11/2008   Duration: 00:02:52
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