In its 8th Sector Report on Energy, published today, the Monopolies Commission focuses on competition in the charging point sector and the development of hydrogen infrastructure, setting out recommendations for the next federal government: 

1. Reasonable prices at charging points require choice for charging customers! 

A widely shared political goal is the transition of private transport from internal combustion engines to electric propulsion. However, the success of electric mobility depends on affordable charging prices. The Monopolies Commission emphasises that such prices require competition amongst charging point operators for customers. However, an analysis of data on approximately 42,000 charging points shows that individual operators often control a high proportion of the charging points in specific regions. Nor can customers obtain centralised information on the prices charged by existing operators when charging immediately without registration – so-called ad hoc charging – in order to make more informed choices. The next federal government should therefore promote competition when developing the charging infrastructure by ensuring that funding programmes provide higher levels of support if the operators of the subsidised charging points in a local area account for less than 40 per cent of all charging points. For fast-charging points on motorways, the possibility of operating charging points from different operators at a single location should be introduced. Furthermore – as is the case with petrol stations – prices and further information, such as operational and occupancy status, should be made available to consumers via a market transparency body. 

2. Regulate new hydrogen networks flexibly and prevent cross-subsidisation!  

With its National Hydrogen Strategy, the Federal Government is pursuing the goal of establishing a hydrogen economy in Germany within a short timeframe. To achieve this, hydrogen pipelines must be built and existing natural gas pipelines repurposed for the transport of hydrogen. The transitional regulation for hydrogen networks introduced for this purpose is an important first step. However, it offers the regulator few opportunities to respond appropriately to the expected dynamic development of the hydrogen economy. The Monopolies Commission therefore recommends a form of dynamic regulation familiar from the telecommunications sector, whereby the Federal Network Agency would regularly analyse market conditions and, where necessary, deploy regulatory instruments to address any competition issues observed. The Monopolies Commission also advises against financing through a joint network charge for the use of hydrogen and natural gas networks. The associated cross-subsidisation would potentially lead to misallocation of investment in hydrogen infrastructure and, in the long term, to delays in the desired transition to hydrogen use.

3. Break up monopolistic structures to promote competition among electricity exchanges!

In view of rising volumes of renewable energy, short-term electricity trading is becoming increasingly important. The marketplaces known as electricity exchanges play a key role in this regard. For almost the entire trading period, the electricity exchanges share their trading books, meaning that suppliers and consumers trading on different exchanges can trade with one another. However, at the end of the trading period, EPEX SPOT – the electricity exchange established for short-term trading in the Germany-Luxembourg bidding zone – does not share its trading books. Particularly towards the end of the trading period, however, fluctuating feed-in of renewable energy makes it crucial for traders that a sufficient number of suppliers and consumers are brought together. The failure to share trading books therefore makes it difficult for competing trading venues to establish an alternative product that is attractive to all electricity traders. The Monopolies Commission therefore recommends that trading books be split across the entire trading period.