PRESS RELEASE

ENERGY: ANTITRUST AUTHORITY LAUNCHES INVESTIGATION INTO POSSIBLE ABUSE OF DOMINANT POSITION BY ESTRA RETI GAS - GAS DISTRIBUTOR FOR THE MUNICIPALITY OF PRATO - AND PARENT COMPANY ESTRA

To determine whether these companies abused their monopoly in the gas distribution market of this municipal jurisdiction by refusing to furnish the Municipality with the information needed to formulate the contract notice for tendering this service. Proceedings concerning the possible adoption of precautionary measures launched as well. The new investigation follows on similar investigations into Italgas. Antitrust Authority monitoring of calls to tender

In a meeting on 01st December 2010, the Autorità Garante della Concorrenza e del Mercato decided to launch investigation to determine whether parent company Estra and Estra Reti Gas, the exiting gas distribution contractor for the Municipality of Prato, abused their dominant position by refusing to furnish the Municipality with the information needed to formulate the contract notice for tendering this service. Noting a risk of serious and irreparable damage to competition, the Antitrust Authority also launched proceedings to consider precautionary measures for supporting the tender in progress, and the parties in question have been granted 7 days (counting from today) to present their case.
The investigation was instigated by a complaint that was lodged by the Municipality of Prato. Public authorities initiated the tendering process for renewing the gas distribution contract last May, because the agreement with Estra Reti Gas (a direct contractor) is scheduled by law to expire in December of this year.
Estra, the parent company, instructed Estra Reti Gas to deny the Municipal solicitation for the information required to formulate the contract notice. The only data furnished in response to a second solicitation consisted of general information about the entire staff of Estra Reti Gas, which manages distribution for other Municipalities as well.
According to the Antitrust Authority, the obstruction of gas distribution tendering causes a slowdown in the liberalization process, which both national and Community legislatures view as essential for this sector. This obstruction is even more worrisome, furthermore, because it involves Municipalities that are making their first efforts to change over from direct contracting to competitive tendering. The Antitrust Authority is keeping the phenomenon under close scrutiny: it is no coincidence that an investigation was launched last October 13th to study the practices of Italgas in relation to the municipalities of Rome and Todi.

Rome - December 07th, 2010