By Chris Jones - 17th May 2006
Some of the EU’s biggest energy companies have been hit by surprise raids as part of an ongoing investigation by the European commission.
Competition commissioner Neelie Kroes has made no secret of her frustration at the painfully slow pace of liberalisation in the energy sector, which Brussels wants to be completed by 2007.
More than 20 sites in Germany, Italy, France, Belgium, Hungary and Austria were raided by commission inspectors as part of Kroes’ efforts to force the pace of liberalisation.
The companies, which include some of the EU’s biggest energy suppliers such as Eon, RWE, ENI and GdF, are suspected of colluding with each other to restrict market access to competitors.
Kroes and energy commissioner Andris Piebalgs announced the results of a initial investigation into EU energy markets back in February, and warned at the time that further action could be taken against individual companies.
Recent moves by several national capitals, including Madrid and Paris, to protect energy companies from foreign takeovers have raised the stakes in the battle with the European regulators.
Spain’s plans to protect Endesa from a bid from Eon have been scuppered by the commission, but France’s rapidly concocted merger of GdF and Suez has broken no EU rules and will not be challenged, even though it hardly follows the spirit of liberalisation.
More raids cannot be ruled out, not least as Kroes made public a long list of grievances against the energy sector back in February.
As well as concerns about access to gas pipelines – the subject of this week’s raids – the Dutch commissioner said she would look into electricity wholesale prices, practices designed to stop consumers switching suppliers and the linking of gas and oil prices.
Ironically, several of the companies raided by the commission have benefited from liberalistion.
Eon’s bid for Endesa is currently nearing conclusion, while GdF and its sister company EdF control much of the UK’s energy supply.
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