European Commission opens anti-competition probe into EPEX Spot

London — The European Commission has opened an investigation into possible anti-competitive behavior by the power exchange EPEX Spot, it said March 30.

The formal investigation will assess whether EPEX Spot has been taking advantage of its dominant position to hinder the activities of competitors on the market for electricity intraday trading facilitation services in at least six EU member states including Austria, Belgium, France, Germany, Luxembourg and the Netherlands, the EC said.

"The Commission is concerned that EPEX Spot may have restricted competition in the intraday markets," the EC said in a statement.

"More specifically, the investigation will focus on concerns that EPEX Spot may have adopted behaviors aimed at foreclosing its competitors by curtailing the ability of their customers to access the entire liquidity of the intraday market," it said.

If proven, this behavior may constitute an exclusionary practice, in breach of the EU's anti-trust rules, specifically on the abuse of a dominant market position as prohibited under Article 102 of the Treaty on the Functioning of the European Union, the EC said.

"In particular, the behavior may distort the prices of trading services, and could ultimately lead to higher electricity prices for consumers and a slowdown in the greening of the electricity system by preventing the cost-effective integration of renewable technologies into the electricity mix," the EC said.

The EC will carry out its in-depth investigation as a matter of priority and it also highlighted that the opening of a formal investigation does not prejudge its outcome.

Spot markets, and in particular intraday markets, are important for the seamless integration of renewable energy supplies that are difficult to forecast until the last hours before electricity is delivered, such as solar or wind.

Power exchanges like EPEX Spot are intermediaries which facilitate transactions between sellers and buyers of electricity in these markets, which are worth tens of billions of euros per year.

EPEX Spot 'abiding by EU and national rules'

"The opening of proceedings does not imply that EPEX Spot has acted in breach of EU competition rules," EPEX Spot said in a statement March 30.

"As long as the investigation is ongoing, EPEX Spot is not in a position to comment beyond the information published by the European Commission," the exchange said.

EPEX Spot is fully committed to cooperate in good faith with the authorities and to continue the constructive dialogue with the EC, it said.

"EPEX Spot abides by EU rules and national legislation in all of the countries where the company conducts business. EPEX Spot's goal is to deliver transparent and reliable price signals for the electricity market, as well as to contribute to the development of the internal energy market – including a competitive European cross-border intraday market since its launch through the Single Intraday Coupling in June 2018," said EPEX Spot.

"The intraday market is a key place of innovation for the decarbonization of the energy sector and the EU Green Deal, as it fosters the integration of renewable energy sources into the power system," the company said.