In view of the sharp rise in electricity prices, the former Director General of the Federal Competition Authority (BWB), Theodor Tanner, sees possible competition problems. That’s what the lawyer and antitrust law expert, who retired in November, said yesterday, Tuesday, in the Economic Journalists’ Club in Vienna.
Tanner holds the EU Commission and Competition Commissioner Margrethe Vestager accountable. According to Tanner, this should examine whether the price-determining “merit order model” leads to agreements that are prohibited under EU law or coordinated behavior. In this model, the most expensive power plant needed to cover demand determines the electricity price. Since electricity from renewable sources in Austria is often not enough, a gas-fired power plant is usually the price-determining factor.
The former BWB boss said there are legal ways to intervene in the market. He referred to the example of Spain, where the gas price for electricity generation is capped, which dampens price increases on the electricity market. The German Stock Corporation Act also stipulates that the Executive Board must act not only in the interest of the shareholders but also in the public interest.
Source: Nachrichten
