Gas Market Briefing: Are Germany's gas distributors willing to change their supply structure?
(Berlin, April 26, 2006) The directive of Germany's Federal Cartel Office and its impact on the German gas market.
The German gas market has to be liberalised in order to comply with EU regulation.Since January 2005 the German Federal Cartel Office (FCO) is planning to open long-term gas supply contracts between importers and German distributors. According to the FCO, long-term contracts with a duration of up to 25 years effectively prevent competition. An opening of these contracts should lead to a diversified supply structure for Gas Distribution Companies (GDC), strengthen competition and open the market for new entrants. The FCO proposes that supply contracts covering more than 80 % must not run for more than 2 years and supply contracts covering 50 - 80 % for not more than 4 years. In September 2005 negotiations between the gas industry and the FCO failed. According to the opponents the subject will now have to be settled in a court case.
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