DUESSELDORF (dpa-AFX) - The European Commission said that it has released German energy firm E.ON (EONGY.PK) from commitments to reduce long-term bookings on the German gas grid almost five years ahead of schedule.
Commissioner Margrethe Vestager, in charge of competition policy, said: 'This case is a good example of how commitments decisions can open up markets to competition quickly and effectively. Since E.ON started to reduce its long-term bookings of pipeline capacity, other companies have been able to enter and take part in the German gas market. The commitments have resolved the competition problem even quicker than expected and are no longer needed now.'
E.ON used to book on a long-term basis the significant majority of the available transport capacity at entry points into its own gas transmission networks. The Commission had concerns that these long term bookings may have prevented other gas suppliers from accessing the German gas market and competing with E.ON.
In May 2010, the Commission accepted commitments from E.ON to release large volumes of gas pipeline capacity and to further reduce its bookings of long term entry capacity in the NetConnect Germany grid. The commitments were originally due to last until April 2021.
Copyright RTT News/dpa-AFX