ENEL-FRANCE TELECOM/NEW WIND
PRESS RELEASE
PRESS RELEASE
ENEL-WIND/INFOSTRADA, UNCONDITIONAL CLEARANCE BY THE COMPETITION AUTHORITY. MARKET CONDITIONS AND THE MULTI-UTILITY STRATEGY HAVE CHANGED SINCE THE FIRST MEASURE WAS ADOPTED
At its meeting on 5 December 2002 the Competition Authority resolved to conclude the investigation into the Enel-Wind Telecommunicazioni/Infostrada operation.
The new investigation had to be undertaken in the wake of and in compliance with the judgement handed down by the 'Council of State' (Supreme Administrative Court) on 1 October 2002, which upheld the Competition Authority's conclusions regarding Enel’s dominant position, but found that the measures imposed were not proportionate, and hence requested the Authority to conduct a fresh investigation into the operation.
Unlike with findings of the first investigation which underlay the measure of 28 February 2001 – subjecting authorisation to the assignment of 5500 MW – the results of the investigation relative to this present proceeding showed that Enel’s multi-utility strategy, consisting of the joint sale of electricity and telecommunications services, had had no tangible effects on the relevant markets during the past two years. Neither was it possible to envisage this strategy having any effect in the short term, namely, when customers of electricity consumption of 0.1 GWh hours and above become 'qualified customers' in the first few months of 2003.
More specifically, a number of facts had become relevant to the case in terms of the background against which the Authority had adopted its original decision on this operation, conditioning the failed development of its multi-utility strategy. In the light of these developments the present investigation had shown that Enel’s intention to offer combined electricity and telecommunications services on the relevant market under the company’s strategic plans that had been declared at the time of the earlier investigation, had come to nothing. Enel's new strategic plans made no provision for the operational integration of electricity and telecommunications services to actual or potential qualified customers. The steps taken to partially integrate the Wind and Enel Distribuzione commercial networks had prgressively produced less positive results. Enel itself had told the Authority that under current market conditions it considered Wind to be a financial investment that would develop independently of its core energy business.
Appraising the operation against this new industrial background, the Authority considered that the acquisition of Infostrada today would not strengthen Enel's dominant position on the electricity supply market to actual and potential qualified customers, and therefore resolved to close the case.
Rome, 9 December 2002