The European energy market is going through a period of rapid change, with many countries reforming their markets to bring them into line with European Union (EU) objectives in this area. As the European energy market opens its doors to competition, many energy companies are facing regulatory scrutiny and competition agencies are moving fast to ensure fair competition is maintained.
Recently, the EU Parliament has ruled that electricity companies must separate their electricity grids from their distribution networks to improve transparency and increase investment. In stark contrast to this ruling, the EU Parliament has rejected a draft law that proposed the forced break-up of natural gas companies or removal of their network management role. The parliament believes gas companies should make their transmission business more independent through internal actions such as the appointment of an in-house ‘compliance officer’ to ensure fair access to the grid. Germany and France are leading the opposition among EU nations to the forced break-up of power and gas companies or the removal of their network management role. EU energy ministers are planning to debate the proposed EU energy regulations in June.
As the EU debates the new power and gas legislation, Europe’s competition regulator, the European Commission (EC), has increased its oversight of the energy sector. This has involved investigations of companies such as E.ON, Gaz de France, RWE AG, Electricite de France SA, Eni SpA and Electrabel SA for possible illegal business practices that could lead to fines totalling as much as 10 per cent of the companies' annual sales.
In the United Kingdom (UK) a parliamentary committee has commenced and inquiry into the British energy market. The independent gas and electricity watchdog, Energywatch, has given evidence to the parliamentary committee stating that, 'The level of competition in the energy market has been allowed to degrade over recent years. Consumers have paid for this with high prices and poor service.'
Energywatch CEO Allan Asher has provided three suggestions that he believes may improve the sector—have the Competition Commission conduct an investigation of the energy sector and devise remedies to improve the market; introduce more openness into the UK electricity market; and cut the link between oil and gas prices.
Sweep of airline websites uncovers widespread breaches
The EC has conducted a sweep of 100 airline websites across 13 European countries, resulting in action against 80 companies. The competition authorities of Sweden and Norway, which took part in the sweep, have named several offending companies, including Austrian Airlines, Blue 1 and Ryanair.
Many of the websites were found to have concealed additional charges including 'airport charges', booking fees or charges related to credit card payments, priority booking, luggage or fuel. Other websites misled customers by promoting false or unobtainable offers, or by using booking forms containing pre-checked boxes requiring travellers to expressly decline a service to avoid extra payments.
