The Bundeskartellamt published its report on the electricity generation market, based on comprehensive data on the use of power plants in Germany and analyzing the market power situation in the generation and first-time sale of electricity for the period from October 1, 2021 to March 31, 2023. The consolidation of market power by a few undertakings and increasing electricity imports were among the main issues highlighted in the report. Accordingly, it was pointed out that RWE continues to be the largest electricity producer in Germany and has an indispensable power to meet electricity demand, thus clearly exceeding the threshold for the assumption of a dominant market position, while EnBW and LEAG are approaching this threshold. This conclusion was based on whether and to what extent an electricity producer is indispensable to meet the electricity demand, taking into account the need to produce electricity at any time of the year when it is demanded, as electricity is not storable. In addition, it is stated that the dominance of certain undertakings in the electricity generation market may allow them to manipulate prices by artificially limiting generation capacity, restricting supply and manipulating prices. As such, although the report does not explicitly identify a dominant position for the undertakings included in the report, it is stated that it aims to help electricity producers assess whether they are subject to abuse control by the authority and therefore whether they are prohibited from manipulatively restricting their capacity. The report also includes assessments on various topics such as the capacities of used and unused power generation plants, the future of coal and nuclear power generation in Germany, and Germany's electricity exports and imports. 

(Bundeskartellamt – 09.08.2023)



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