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EUROPEAN COMMISSION
PRESS RELEASE
Brussels, 5 March 2014
Antitrust: Commission fines Romanian Power Exchange
OPCOM for discriminating against EU electricity traders
The European Commission has imposed a fine of just over € 1 million on S.C. OPCOM S.A.
for abusing its dominant position in the Romanian market for facilitating electricity spot
trading, in breach of EU antitrust rules. OPCOM operates the only power exchange in
Romania. Power exchanges are organised markets for trading electricity. Spot trading
means trading in the short run (e.g. within the same day or for the next day). The
Commission found that OPCOM discriminated against EU-based electricity traders from
outside Romania for over five years.
Joaquín Almunia, Commission Vice President in charge of competition policy, said: "Power
exchanges are key to the efficient functioning of energy markets, in the best interest of
consumers. OPCOM’s abusive behaviour prevented EU traders from joining the Romanian
power exchange's spot markets, creating an artificial barrier to entry in breach of EU
competition rules. National barriers of this type do not only hamper the completion of a
Single Market in energy, but also stand in the way of the development of efficient, liquid
markets." (see also the statement)
Between 2008 and 2013, OPCOM required members of the spot electricity markets to
have a Romanian VAT registration, refusing to accept traders that were already registered
for VAT in other EU Member States. As a result, EU traders could only enter the Romanian
wholesale electricity market by setting up a fixed establishment in Romania, which
entailed additional costs and organisational disadvantages for EU traders compared to
Romanian traders. Discrimination on grounds of nationality or place of establishment is
against the basic principles of the Single Market.
Power exchanges play an important role in providing public price information. This is
crucial to achieve transparent and reliable electricity prices on the wholesale and retail
markets. OPCOM's VAT registration requirement created an artificial barrier to market
entry for EU traders and in turn reduced liquidity on the wholesale electricity market. The
number of affected traders is significant. On power exchanges in comparable markets,
over 50 % of the participants are EU traders without local VAT registration.
The Commission also holds OPCOM's parent company CNTEE Transelectrica S.A.
(‘Transelectrica’) liable for the infringement. Transelectrica is the operator of the
Romanian electricity transmission system.
Removing barriers to entry in wholesale electricity markets improves liquidity and fosters
competition, which leads to a downward pressure on prices. It also ensures that the
market sends correct price signals.
The Commission today also adopted a decision in another antitrust investigation involving
power exchanges (see IP/14/215).
IP/14/214
Fines
The Commission imposed a fine of € 1 031 000 on Transelectrica and OPCOM, which are
jointly and severally liable for the payment of the fine. The fine was set on the basis of the
Commission's 2006 Guidelines on fines (see IP/06/857 and MEMO/06/256). In setting the
level of fines, the Commission took into account the company's relevant sales in Romania,
the serious nature of the infringement and its duration.
Background
The Commission opened antitrust proceedings into OPCOM’s behaviour on the Romanian
spot exchange markets in December 2012 (see IP/12/1355) and informed the company
about its objections in June 2013 (see IP/13/486).
Article 102 of the Treaty on the Functioning of the European Union (TFEU) prohibits the
abuse of a dominant market position which may affect trade between Member States. The
implementation of this provision is defined in the Antitrust Regulation (Council Regulation
(EC) No 1/2003), which can be applied by the Commission and by the national
competition authorities of EU Member States.
More information on today's decision will be available on the competition website in the
public case register under the case number AT. 39984, once confidentiality issues will have
been dealt with.
Action for damages
Any person or firm affected by anti-competitive behaviour as described in this case may
bring the matter before the courts of the Member States and seek damages. The case law
of the Court and Council Regulation 1/2003 both confirm that in cases before national
courts a Commission decision is binding proof that the behaviour took place and was
illegal. Even though the Commission has fined the companies concerned, damages may be
awarded without these being reduced on account of the Commission fine.
In June 2013, the Commission has adopted a proposal for a Directive that aims at making
it easier for victims of anti-competitive practices to obtain such damages (see IP/13/525
and MEMO/13/531). More information on antitrust damages actions, including a practical
guide on how to quantify the harm typically caused by antitrust infringements, the public
consultation and a citizens' summary, is available at:
http://ec.europa.eu/comm/competition/antitrust/actionsdamages/documents.html
Contacts :
Antoine Colombani (+32 2 297 45 13, Twitter: @ECspokesAntoine )
Marisa Gonzalez Iglesias (+32 2 295 19 25)
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