BLUGAS-SNAM
PRESS RELEASE
PRESS RELEASE
The Authority has extended until 7 October 2004 the date for the closure of the Snam-Blugas investigation
At its meeting on 24 June 2004, the Competition Authority resolved to extend until 7 October 2004 the deadline for concluding the investigation into ENI, that began on 18 March 2004, for having failed to comply with the measure issued on 21 November 2002 relating to the Snam/Blugas case. In that measure, the Authority, pursuant to article 82 of the EC Treaty, and had imposed a fine of EUR 1000 on ENI for having abused its dominant position through its subsidiary Gas and Power Division, formerly Snam, on the gas sales market, and had ordered ENI to adopt measures to remove the entry barrier to other competitors, with which ENI had never complied.
The decision to extend the deadline was taken as a result of the commitment entered into by ENI during the course of the investigation, underw which it undertook to comply with the Authority's order to sell volumes of gas to a number of different operators as from 1 October 2004.
More specifically, ENI's commitment was to assign 2.3 billion cubic metres of gas every year, over a period of four years, indexed to the parameter Qe as defined by the Electric Power and Gas Authority. The gas would be supplied at the entry point at Tarvisio, using a pro rata distribution system.
The Authority considered that this commitment would enable a number of different operators to use volumes of gas under conditions comparable with those for independent supplies on the international market (gas release) beginning 1 October 2004. As far as quantities were concerned, the Authority noted that the amount of gas released by ENI in this way was equivalent to about 3% of the total gas demand in 2003. With regard to the cost of the released gas, the price proposed - both in terms of value and the way in which the price was calculated - appeared to be in line with current imported gas supply conditions applied to Italian operators of these, which were consistent with the ENI offer in terms of volume and duration.
In the light of these considerations, the Authority considered that, if effectively honoured, ENI's commitment could be considered equivalent to the upgrading of the international gas pipelines that ENI had originally proposed to remove the effects of its abuse of dominant position according to the 21 November 2002 measure.
Considering the ENI would be required to adequately demonstrate its effective compliance with its commitment, the Authority resolved to extend to 7 October 2004 the deadline for concluding the noncompliance proceedings.
Rome, 10 July 2004