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ENRON CONCLUDES MILESTONE GERMAN TRANSMISSION AGREEMENT FOLLOWING FEDERAL CARTEL OFFICE INVESTIGATION
FOR IMMEDIATE RELEASE: Monday, January 11, 1999
FRANKFURT, GERMANY – 11 JANUARY 1999 – Enron Energie GmbH, a subsidiary of Enron, has formally executed an agreement for transmission and network services with regional supplier and grid operator ELEKTROMARK, based in Hagen, which enables Enron to supply electricity to Stadtwerke Ludenscheid as contracted from January 1, 1999. The transmission agreement followed a cautionary letter to ELEKTROMARK from the German Federal Cartel Office, during an investigation requested by Enron under the Competition Act and the new Energy Industry Act into possible anti-competitive behavior. ELEKTROMARK had initially refused to grant transmission access requested by Enron.
Mark Frevert, CEO of Enron Europe, said, “We are very pleased we are able to meet our contractual commitments to our customer and applaud the Federal Cartel Office’s actions in supporting competition in the German energy market.
This case is an early milestone in the continuing liberalization of the German, and European, energy markets. The Federal Cartel Office’s actions are a valuable contribution to establishing clear ground rules for impartial transmission network operation. This is essential to customer choice, a level playing field for all suppliers and the possible establishment of a German electricity exchange. We particularly welcome the emphasis the Federal Cartel Office gave concerning network operators’ obligations to grant non-discriminatory transmission access to all transmission customers, and that preferential treatment of a network operator’s own, or its affiliates’ customers, is not permissible.”
John Thompson, vice-president responsible for Enron’s German activities, added that “while we have established a constructive relationship with ELEKTROMARK, the successful outcome of this case is just a first step toward a truly transparent German energy market. Although this specific transmission agreement does enable electricity to flow to German customers from outside ELEKTROMARK’s regional transmission grid, Enron has reserved the right to review certain elements of the transmission tariff, particularly the network service charge. Furthermore, this has been a lengthy and expensive process for all. The experience reinforces the need for regulated third party access in Germany. A regulated system should include clearer, uniform rules relating to granting transmission grid access, grid management and the calculation of transmission tariffs. Otherwise the Germany energy market cannot function freely and efficiently for the benefit of consumers.”
Enron’s European activities were established in 1989 and are based in London. Enron today employs more than 1300 people in Europe, primarily in offices in Frankfurt, London, Madrid, Moscow, Oslo and Warsaw, and is also present in several other European countries. Enron is the market maker for electricity trades in Norway and is ranked among the leading spot gas and electricity marketers in the UK. Across Europe, Enron has developed, part owns and operates power stations in Germany, Italy, Poland, Turkey and the UK, including the world’s largest privately-owned CCGT combined heat and power plant, the 1875 MW Teesside power station in the UK.
Enron is one of the world's leading integrated electricity and natural gas companies. The company, which owns approximately $30 billion in energy related assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
Click here to download this press release in Microsoft Word format.
For additional information please contact:
Joan Wasylik (Enron)
44(0)171 316 6689
Sieglinde Schneider (Accente PR)
49 611/402022
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