European Commission launched probe into two gas blockbusters of Western Europe – German E.ON and French Gaz de France (GdF), blaming on them the suspected colluding that hinders liberalization of gas market of Europe.
As a result of investigation, E.ON and Gaz de France may face the aggregate fines of €9.4 billion or the order to split operations.
The European Commission revealed it is investigating E.ON and Gaz de France for suspected colluding, The Financial Times reported yesterday.
The probe is based on evidences gathered in last year’s raids and two energy giants could face hefty fines or be ordered to split operations.
The probe is focused on the alleged collusion or practice of E.ON and GdF, whereby they undertook to stay out of domestic market of each other.
The reaction of Europe’s competition watchdog is quite predictable. Its standing is that the companies rendering similar services for gas/energy sales should compete with each other to maintain the price parity.
Indeed, domestic gas prices in Germany and France soared from $290/ths cu meters to $450/ths cu meters in 2006. Past year, E.ON controlled 60 percent of the gas market of Germany and GdF covered 79 percent in France.
The analysts say the giants will hardly be fined for collision.
The real target could be to introduce an amendment to Europe’s laws that will demand breaking up trader operations on gas market, its deliveries and the sale of electric energy, said Maxim Shein from BCS.
According to Troika Dialog analysts, this amendment will first hit Gazprom, which intends to construct Nord Stream pipeline from Russia to Germany and sell gas delivered by it to end users of Germany and France.
As a result of investigation, E.ON and Gaz de France may face the aggregate fines of €9.4 billion or the order to split operations.
The European Commission revealed it is investigating E.ON and Gaz de France for suspected colluding, The Financial Times reported yesterday.The probe is based on evidences gathered in last year’s raids and two energy giants could face hefty fines or be ordered to split operations.
The probe is focused on the alleged collusion or practice of E.ON and GdF, whereby they undertook to stay out of domestic market of each other.The reaction of Europe’s competition watchdog is quite predictable. Its standing is that the companies rendering similar services for gas/energy sales should compete with each other to maintain the price parity.
Indeed, domestic gas prices in Germany and France soared from $290/ths cu meters to $450/ths cu meters in 2006. Past year, E.ON controlled 60 percent of the gas market of Germany and GdF covered 79 percent in France. The analysts say the giants will hardly be fined for collision.The real target could be to introduce an amendment to Europe’s laws that will demand breaking up trader operations on gas market, its deliveries and the sale of electric energy, said Maxim Shein from BCS.
According to Troika Dialog analysts, this amendment will first hit Gazprom, which intends to construct Nord Stream pipeline from Russia to Germany and sell gas delivered by it to end users of Germany and France.
