German cartel office head warns energy groups on price hikes

November 20, 2007 - 0:0

FRANKFURT (AFP) -- The head of the German cartel office, Bernhard Heitzer, warned Monday it would not hesitate, if necessary, to use new measures that allow it to force energy companies to lower prices.

""If the lawmakers give us more powerful tools, they're not just threats, we will actually use them,"" Heitzer told the German daily Handelsblatt, adding that he had ""considerable doubts"" about a latest round of price increases.
Last week, The German parliament passed legislation to prevent electricity firms, food producers and other companies from abusing their market position.
If authorities suspect electricity prices are exorbitant, suppliers must disclose their costs and calculations and if prices are deemed excessive, the cartel office can force companies to lower prices.
German energy giants E.ON and RWE sparked controversy by announcing stiff price increases for January 1, saying they had to cover increasing costs and investments in renewable energies.
Heitzer said that ""public opinion and experts have voiced doubts about the validity of these arguments. They don't seem plausible to us either.""
Four energy companies that dominate the German market, the other two are Vattenfall and EnBW, have been accused several times, by German and European Union officials of misusing their positions.