2009 Energy Sector Report
The Monopolies Commission has published its second sector report under the Energy Industry Act, entitled “Electricity and Gas 2009: Energy Markets Caught Between Politics and Competition”. This in-depth analysis of the German electricity and gas markets shows that there is still no effective competition in the markets for grid-based energy supply in Germany. In the electricity market, the Monopolies Commission identifies significant competition problems, particularly at the generation level, which are caused by a high degree of market concentration. The main barriers to competition in the gas market stem, on the one hand, from the high concentration of gas supply amongst a small number of companies and, on the other hand, from the lack of access for competition and regulatory authorities to the production stage.
When it comes to the practical implementation, the main focus must be on opening up markets and removing structural barriers to market entry.
