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EC Approves Joint Venture Related to Allocation of Power Transmission Capacities on Borders Between Belgium, France, Germany, Luxembourg and the Netherlands
added: 2008-08-18

The European Commission has approved under the EU Merger Regulation the creation of a joint venture, to be named Capacity Allocation Service Company for Central Western Europe (“CASC”) by CEGEDEL Net S.A. of Luxemburg, ELIA System Operator SA/NV of Belgium, EnBW Transportnetze AG of Germany, E.ON Netz GmbH of Germany, RTE EDF Transport SA of France, RWE Transportnetz Strom GmbH of Germany and TenneT TSO BV of Netherlands.

All parties are electricity transmission system operators, responsible for the operation of the high voltage transmission grids in their respective control area. After examining the operation, the Commission concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

CASC would provide cross-border capacity allocation services to the interconnectors in Central Western Europe (CWE) with a view to harmonising long-term auctions of power transmission capacity by creating a one-stop-shop for market participants. The creation of CASC aims at implementing Regulation (EC) No 1228/2003 of the European Parliament and of the Council of 26 June 2003 on conditions for access to the network for cross-border exchanges in electricity. The main benefit of harmonising the long term auctions would be that market participants requesting cross-border capacities in the CWE region could approach one auction office instead of having to deal with a number of different offices and rules.

The Commission’s examination of the proposed transaction showed that there were no horizontal overlaps between the transmission networks of the participating electricity transmission system operators. Moreover, given the limited size and scope of the joint venture's activities, its creation would not enhance the risk of any coordinated behaviour between the vertically integrated energy groups to which most of the parties to the joint venture belong. The Commission therefore concluded that the proposed transaction would not raise any competition concerns.


Source: European Commission

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