14. 2. 2000

Austrian Federal Ministry for Economic Affairs: CEZ Do Not Export for Dumping Prices

The Austrian Federal Ministry for Economic Affairs had examined at the beginning of this year supplies of electricity by CEZ to the Austrian market. The Federal Ministry is obligated under EIWOG Act (§ 13) to do so at each purchase of electricity from third countries.

 

The Austrian Federal Ministry for Economic Affairs had examined at the beginning of this year supplies of electricity by CEZ to the Austrian market. The Federal Ministry is obligated under EIWOG Act (§ 13) to do so at each purchase of electricity from third countries.

The Federal Ministry examined two issues:

  • Whether or not electricity is supplied by a company which does not include into its price quotation all costs of the price base, which costs should be included with due diligence into the base;
  • Whether or not electricity is to be supplied under the conditions of misusing a position controlling the market, especially to the detriment of customers, or using the practice of forcing competition out of the market.
  • In both cases, the Federal Ministry concluded negative answers. CEZ includes all necessary costs into its prices of electricity to be supplied to the Austrian market and will not misuse its position on the market, nor use the practice of forcing competition out of the market.
  • The answer to the former question states: "Due to the index-orientation of prices, quotation prices can be expected to include all costs which are to be included with due diligence into the basis for quotation."The answer to the latter question states: "Based on the data which can be read, amongst other, from UCPTE/UCTE publications, the supplying company CEZ should be included in the European comparison to the level "small" businesses... It can be assumed that CEZ is not able to occupy on the Austrian market or the European market a position in which the company could control the market. ...it can be assumed that electricity will not be supplied under the conditions of misusing a position controlling the market, nor using the practice of forcing competition out of the market".

     

    Ladislav Krizpress, spokesman of CEZ