Stampa

ENEL TRADE-CLIENTI IDONEI


PRESS RELEASE



PRESS RELEASE
THE COMPETITION AUTHORITY IS BEGINNING AN INVESTIGATION INTO THE ALLEGED ABUSE OF A DOMINANT POSITION BY ENEL AND ENEL TRADE IN THE "QUALIFYING CUSTOMERS" SECTOR


At its meeting on 7 March 2002, the Authority resolved to institute an investigation under section 14 of the Competition Act (Law 287/90) into Enel S.p.A. and Enel Trade S.p.A. to ascertain whether they had violated article 82 of the EC Treaty (prohibition on the abuse of a dominant position).
The investigation began as a result of a complaint drawing the attention of the Authority to a number of exclusive and preemption clauses set out in the Contract for the supply of electricity prepared by Enel Trade S.p.A. for the sale of electricity to qualifying customers in 2002, together with forecast increased prices for the sale of electricity to supplement the "basic" supplies, and the commercial proposals set out in a letter addressed to qualifying customers by Enel Trade on 17 December 2001.
The contractual clause giving exclusive electricity supply rights to Enel Trade (whatever the origin of the electricity, namely, whether conventionally generated power, or from CIP/6 power stations, or imported power) would have the main effect of discouraging qualifying customers from switching suppliers, thereby erecting a barrier to foreign and domestic producers, and domestic wholesalers. This clause would enable Enel, through Enel trade, to bring back under its own control both the supplies of "modulazione" (topping-up) power and the supplies of "basic" power, making qualifying customers captive Enel customers, obliging them to purchase their topping-up electricity supplies from Enel.
Furthermore, the Contract includes a "pre-emption clause" in favour of Enel Trade to supply industrial sites abroad belonging to companies registered in Italy: with this right of pre-emption, Enel Trade would be able to control any alternative offering to a qualifying customer already being served in Italy, and thereby neutralise any competing offering abroad.
The Authority ruled that this conduct by Enel, through Enel Trade, was an offence under article 82 of the EC Treaty because it was likely to exclude and/or limit the operations of independent operators on the market for the sale of electricity to qualifying customers in Italy, and in particular reduce the possibilities open to companies registered in other countries of the European Union to export their products to the Italian market. This conduct could have negative repercussions on competition for the supply of Italian-produced electricity and imported electricity, which are the two main sources on the deregulated market, and thereby substantially impede intra-Community trade.
The investigation is scheduled to be completed by 15 February 2003.

Rome, 15 March 2002