Abuse of a dominant position by RWE Polska and Energa-Operator – these are the latest decisions of the President of UOKiK concerning the electricity market. Unlawful practices could have impeded the choice of electricity supplier by end-users

The process of liberalization of the Polish energy sector has been taking place for many years. One of its aims is to lead to free competition of entities involved in the sale of electricity. This purpose is to be served by the introduction of free choice of electricity supplier by end-users. This opportunity has been enjoyed by undertakings since 2004, while consumers were allowed to do so in 2007. Unfortunately, the experience of the Office shows that there are cases of hindering the operation or blocking market entry to operators beyond the capital groups of electricity producers or distributors.

Recently, the President of UOKiK issued a decision regarding RWE Polska. Till 2007 the company enjoyed the position of a monopolist on the electricity distribution market in Warszawa and the surrounding municipalities. This implies that retailers operating in this region were obliged to use its services in order to provide the final recipient with electricity. In addition, they competed with RWE Polska, which also deals with the sale of energy.

The proceedings carried out by UOKiK following the complaint filed by Polenergia showed that using its market power RWE Polska, between 2004 and 2007, imposed unfavourable contract terms upon its contractors in the distribution market, being also its competitors in the electricity trading market. The company imposed upon them obligations, which itself it did not have to perform as a seller of electricity. The monopolistic practices increased the operating costs of the retailers, exposing them to financial losses, thus making it difficult for them to stay in the market.

RWE Polska has been imposed a fine amounting to PLN 6.3 million (PLN 6 362 876) for the abuse of its dominant market position.

Another decision concerned Energa-Operator. Proceedings against the undertaking were instituted in February 2011, following a complaint by the municipality of Bytów (Pomorskie Voivodeship). The findings of the Office show that for almost a year, until the end of 2010, Energa-Operator made it difficult for the municipality to choose retailer delivering electricity to lighting points in town squares, streets and public roads. Taking advantage of the fact that it owns most of the lighting infrastructure in the municipality, the company said that it would not consent to supply of electricity by an entity beyond Energa capital group. However, according to law, lighting of public places and roads is the responsibility of municipality, which covers the costs of the electricity, and hence it should have the right to freely choose an electricity supplier. For the practices restricting competition Energa-Operator was imposed a fine amounting to PLN 260 thousand (PLN 260 415).

The decisions described above are not final. The undertakings have lodged appeals to the court.

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