German regulator says 'No workable competition' in German power market - report

FRANKFURT (Thomson Financial) - The German Monopoly Commission, an independent body of experts, has found that "no workable competition" exists in the German market for gas and power, Die Welt reported, citing an obtained report.

However, Juergen Basedow, chairman of the commission, has no information on market agreements as previously stated by the cartel office, the paper reported.

Earlier this week, the large German energy providers came under pressure after the German cartel office said it found evidence that German utilities misused their positions to make market arrangements.

Basedow added that the high prices in the German energy market are mainly due to the processes at the European Energy Exchange.

"There are signs supporting the view that wholesale prices at the bourse are above those prices that could be realised under normal competitive conditions," he told die Welt, pointing to the fact that there are only a few large providers such as E.ON AG and RWE AG, who can demand high prices. cs1/cw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved.

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