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BLUGAS/SNAM


PRESS RELEASE



PRESS RELEASE
THE COMPETITION AUTHORITY HAS BEGAN INVESTIGATING SNAM RETE GAS AND SNAM FOR AN ALLEGED ABUSE OF DOMINANT POSITION


At its meeting on 25 October 2001, the Competition Authority resolved to commence an investigation into the Snam Spa and Snam Rete Gas Spa companies to ascertain liability for an alleged abuse of dominant position in the gas transport and sales sector.  
SNAM has 87% market share of gas sales, and SNAM Rete Gas controls about 97% of the national gas transport network.  Their alleged abuse of dominant position refers to their assignment of transport capacity through the National Gas Network to the gas import entry points, and specifically the point of entry at Passo Gries on the Italian-Swiss border, in the period April-May 2001, and during the "thermal year" 2001-2002. More particularly, it is alleged that priority had been granted to customer-operators (SNAM itself and companies that had purchased gas from SNAM) to the detriment of the independent operators that purchase their gas from other suppliers.
The conduct at issue is therefore considered likely to have excluded, or severely constrained, the presence on the gas market of companies, who are not SNAM companies, that purchase their gas from suppliers other than SNAM, and which compete against SNAM.
Since this conduct has a substantial effect on the international trade in natural gas between the member states of the European Union, it is likely to seriously interfere with intra-Community trade by limiting access to the natural gas transport and sales market in Italy.  The investigation has therefore been instituted under to article 82 of the EC Treaty.  
The date for the completion of the investigation has been set as 25 November 2002.

Rome, 2 November 2001