Enea Operator has imposed onerous agreement terms upon its contractors. A fine amounting to PLN 0.5 million was imposed on the undertaking  for abuse of a dominant position on the market of electricity distribution.

Enea Operator is a monopolist on the market of energy distribution of western and north-western Poland. The contracts concluded with the undertaking define, inter alia, the connection power and contracted power. The former is the power planned for consumption or introduction into the network used to design the connection. Calculation of this amount affects the connection cost born by the future electricity recipient. Contracted power, on the other hand, is the consumed power or the power introduced into the network.

The proceedings against Enea Operator were instituted in October 2009 after obtaining the information from the President of the Energy Regulatory Office, where it was established that the undertaking had imposed onerous agreement terms on its contractors, yielding thus unjustified profits. UOKiK questioned the contractual clause concerning the connection to the network, according to which in the case of ordering contracted power, in the contract for energy distribution below the connection power, the lower value became the connection power, although the charge for connection to the network was collected for the higher power value.

This meant also that the entity that has already paid once for the defined quantity of connection power and wanted to obtain it in the future had to make the payment again – for an increase in the connection power to the initial amount.

This practice was particularly detrimental to entrepreneurs starting their business as they are usually unable to use the full production power in the first year of operation (e.g. regarding the development of their establishment or gaining contracts). Specification of a higher connection power should be a guarantee for them that they will be able to consume more energy after the start-up period without incurring any significant costs.

The President of UOKiK has imposed a fine amounting to nearly half a million zlotys (PLN 477,976.50) on Enea Operator for the abuse of a dominant position. The decision is not final. The undertaking has lodged an appeal to the Court of Competition and Consumer Protection. It should be added that the company discontinued the questioned practice  in May 2009.

It is not the first decision of the President of UOKiK concerning Enea Operator. In September 2008 a fine amounting to PLN 11 million  was imposed on the undertaking for hindering and unjustified delaying of the receipt of terms for the connection to the network for several wind power plants. The Court of Competition and Consumer Protection upheld the decision of the President of UOKiK in March 2010.

The President of UOKiK continually monitors the energy sector and reacts when the violation of provisions occurs. This year three decisions concerning application of unlawful practice by energy companies have been issued. Furthermore, there are currently five pending antitrust proceedings, including one conducted to impose a fine for non-compliance  with a decision.

The result of the analysis of the electricity market by the President of UOKiK is also the report titled Development of competition and consumer protection on the energy market, issued at he beginning of 2010.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel.:(+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: malgorzata.cieloch@uokik.gov.pl