Protection of competition Protection of competition in the Czech energy marketin the Czech energy market

Robert NerudaRobert NerudaDirector of Chairman´s CabinetDirector of Chairman´s Cabinet

Office for the Protection of CompetitionOffice for the Protection of Competition

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TheThe Office Office for the Protection of Competitionfor the Protection of Competition

Competence of the OfficeCompetence of the Office Legislative framework of the activityLegislative framework of the activity

• Act. No 143/2001 Coll. Act. No 143/2001 Coll. (Competition Act)(Competition Act)• aall sectors, all undertakingsll sectors, all undertakings

Cooperation with the Energy Regulatory Cooperation with the Energy Regulatory OfficeOffice

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Situation Situation in the Czech Republicin the Czech Republic

Electricity marketElectricity market• structure of the marketstructure of the market• liberalizationliberalization

Gas marketGas market• structure of the marketstructure of the market• liberalizationliberalization

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ActivitActivitiesies of the Officeof the Office in the area in the area

- DecisionalDecisional- investigationinvestigation- proceedingsproceedings- finesfines- prohibition prohibition

- Competition AdvocacyCompetition Advocacy- recommendationsrecommendations- proposalsproposals- best practicesbest practices

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Decisions on Decisions on concentrationsconcentrations

concentration of ČEZ and 5 regional concentration of ČEZ and 5 regional distribution companiesdistribution companies• approved with approved with remediesremedies, virtual electric power , virtual electric power

stationstation

concentration of RWE Gas + Transgas + 8 concentration of RWE Gas + Transgas + 8 regional distribution companiesregional distribution companies• approved with remediesapproved with remedies

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Decisions in antitrustDecisions in antitrust

ČEZ case (2003)ČEZ case (2003)• Prohibited vProhibited vertical agreement on the ertical agreement on the

prohibition of reprohibition of re--import of the electricityimport of the electricity• Fine – 7,5 million CZKFine – 7,5 million CZK

RWE case (2006)RWE case (2006)• Abuse of dominant position by the Abuse of dominant position by the

company RWE Transgascompany RWE Transgas• Fine – 370 million CZKFine – 370 million CZK

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New approachNew approach More frequent competition advocacyMore frequent competition advocacy Prevention preferredPrevention preferred More flexible approach before and More flexible approach before and

during formal investigationduring formal investigation Information campaignInformation campaign

• SeminarsSeminars• International Conference International Conference

Competition and CompetitivenessCompetition and Competitiveness• Brno, 28 - 29 November 2006Brno, 28 - 29 November 2006

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Emission AllowancesEmission Allowances and the competitionand the competition

Negative impacts on competitionNegative impacts on competition Impact on the electricity pricesImpact on the electricity prices

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Further informationFurther information

www.compet.czwww.compet.cz