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Gas market: Estra Reti Gas srl and Estra spa sanctioned for abuse of dominant position


PRESS RELEASE


PRESS RELEASE

Gas market: Antitrust sanctions Estra Reti Gas srl and Estra spa for abuse of

dominant position

276,132 euro fine to be paid jointly and severally for having blocked then delayed the call to tender for reassignment of natural gas distribution services.

In a meeting on 25 January 2012, the Autorità Garante della Concorrenza e del Mercato decided to impose a joint and several fine of 276,132 euros on Estra Reti Gas Srl and its parent company, Estra SpA, for abuse of dominant position in the gas distribution market of the Municipality of Prato.

According to the Antitrust, the companies first refused and then delayed providing information to the Municipality of Prato that was essential for preparing competitive contract notices for the reassignment of gas distribution services and for establishing equal conditions for other tender competitors-participants.

Documentation acquired by Authority offices during the course of the investigation revealed that Estra and Estra Reti Gas had developed and applied an articulated dilatory strategy in order to prevent the Municipality of Prato from issuing an independent call to tender before a jurisdiction-defining decree prohibited the Municipalities from calling tenders delimited by their own concession perimeter.

Most of the information requested by the Municipality of Prato, more specifically, was either readily available or in need of simple processing, yet the companies responded to the requests for transmission with refusals and delays. The lateness in transmission led to repeated postponements of the bid submission deadline (originally set for 06 May 2011), so that the tendering procedure is in fact still in progress.

As a result, Estra Reti Gas’s tenure as the de facto gas distribution service for the Municipality of Prato has extended well beyond the original 31 December 2010 contract expiration date, and will continue on until tendering procedures have reassigned the service and handed it over late to the most efficient operator.

Rome - 31 January 2012