More competition in energy markets
Bavarian power grid suppliers have to reduce charges
On 13 December 2007, the court of appeals (Oberlandesgericht) Munich has confirmed the approval of grid charges of the Bavarian regulatory authority (Landesregulierungsbehörde) by pronouncing seven judgements.
Court judgements:
Court of appeals Munich fully confirmed the decisions of the Bavarian regulatory authorities (district governments), represented by Loschelder Rechtsanwälte (Dr. Raimund Schütz and his team) in seven proceedings on the first approvals of grid charges.
The complainants applied for approval of grid charges with the Bavarian regulatory authorities. The authorities have partly and considerably reduced these charges. Seven energy suppliers have filed an appeal against the decisions.
The court of appeals Munich confirmed the decisions of the Bavarian regulatory authorities. According to court, the partly clear reductions are based on the fact that the applied charges exceed the admissible competition standard as of the new Energy Act (Energiewirtschaftsgesetz). Court confirmed the test standards of the Bavarian regulatory authority being totally legal.
Court of appeals Munich is the second Bavarian court confirming the regulatory practise of the Bavarian regulatory authorities represented by Loschelder Rechtsanwälte. With its order of 26 October 2007, the court of appeals Bamberg did already dismiss the appeal of a Franconian energy supplier in total.
Background information:
During re-enactment of the Energy Act in 2005, legislation decided to arrange for competitive conditions in using grid systems by regulation. Until then, no such competitive conditions in the market did exist, because energy network providers are monopolists in their area and therefore not under any effective competitive control.
Main parameters of using the grid are the charges raised by the network providers. They should meet the standard of fair and effective competition. To achieve this standard, legislation decided on ex ante-regulation and made charges subject to approval. The order of the court of appeals Munich leads to more competition in energy markets.
