The Monopolies Commission has presented its first sectoral report under the Energy Industry Act, in accordance with Section 62(1) of that Act: “Electricity and Gas 2007: Competitive Shortcomings and Hesitant Regulation”. In it, the Commission comments on the current state and foreseeable development of competition and assesses whether effective competition exists in the markets for the grid-based supply of electricity and gas in the Federal Republic of Germany. The Monopolies Commission also assesses the application of the provisions of the Energy Industry Act relating to regulation and competition supervision, and discusses current competition policy issues concerning the grid-based supply of electricity and gas.