Threats by energy providers to cut off gas or electricity supplies to consumers who refuse to pay price increases, referring to their rights under Section 315 of the German Civil Code, constitute an abuse of a dominant position and are inadmissible under competition law. The same applies to the growing trend of some energy providers to cancel special rate contracts with consumers and to downgrade their customers to the more expensive standard supply rate. This was the conclusion of a recent joint conference of the Bundeskartellamt and the Land competition authorities. According to a decision taken by the conference at the end of October 2006 any energy providers violating competition law in future will have to reckon with abuse proceedings by the competition authorities.

The President of the Bundeskartellamt, Ulf Böge, stated: “By referring to their rights under Section 315 of the Civil Code customers can demand reasons in support of the appropriateness of the energy price increases imposed. By threatening to cut off supplies or change contractual conditions as a reaction to objections to the price increases, energy providers, which usually still have a virtual monopoly in their areas of supply, violate the prohibition under competition law of exploitative practices by dominant companies.”

Proceedings initiated in September by the Bundeskartellamt against a national provider (see Press Release of 25.9.2006) could in the meantime be brought to a close because the provider improved its technical-organizational conditions to prevent such threats from happening in the future.