PositionBrief article

In order to avoid being penalised for abusing its dominant position in the market, CEZ, the Czech electricity incumbent, has submitted to the European Commission a set of commitments, which were approved on 10 April. These commitments, which include divesting generation capacity to allow other operators to enter the market and restore competition to the Czech market for the generation and wholesale supply of electricity, are now legally binding.

"More competition leads to lower prices. The divestiture of significant generation capacity will allow a new player to enter the Czech electricity market and to compete with the incumbent CEZ. This will benefit all electricity customers, " commented Competition Commissioner Joaquin Almunia.

Following an unannounced inspection at the premises of the energy company CEZ, in November 2009, the Commission decided to open an in-depth investigation (second phase) into the Czech electricity sector in June 2011. The Commission was particularly concerned that the...

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