A366 - ANTI-COMPETITIVE CONDUCT ON THE POWER EXCHANGE
PRESS RELEASE
PRESS RELEASE
ANTITRUST AUTHORITY: ENEL PRESENTS UNDERTAKINGS TO CLOSE INQUIRY INTO ALLEGED ABUSE OF DOMINANT POSITION IN ELECTRICITY MARKET
Company willing to auction 700 MW p.a. for two years using financial contracts. Authority to assess proposal by 20 December 2006
The Italian Competition Authority, at its meeting on 24 October 2006, decided to proceed with an assessment of the commitments proposed by ENEL and ENEL Produzione within the investigation launched in April 2005 into an alleged abuse of its dominant position in fixing prices on the Electricity Exchange. The two companies, based on the new rules established by the Bersani law, have offered to sell 700 MW p.a. (composed of different types of product) for the years 2007 and 2008 in the Macrozona Sud (Southern Region), by way of a competitive bidding system leading to the signing of financial contracts for periods of three months or one year.
The sale price of the contracts will be arrived at by way of a competitive auction with a reserve price set according to the fixed and variable costs of production at a new power station (newly built combined gas cycle).
Any observations as to the proposed undertakings presented by ENEL and ENEL Produzione, which have been published on the Authority's website, must be received in writing within 30 days. The Authority will assess by 20 December 2006 whether the proposals are sufficient to allay the anti-competitive concerns which gave rise to the investigation.
The procedure for presentation of undertakings, introduced by the Bersani law, stipulates that companies being investigated for possible anti-competitive conduct may present undertakings which would eliminate the anti-competitive behaviour under investigation. Should the Authority adjudge these commitments suitable for the purpose, it will render them obligatory and close the proceeding without ascertaining a misdemeanour. If the commitments are not adhered to, the Authority may levy a fine of up to 10 per cent of turnover.
Rome, 26 October 2006