Mergers and competition investigations

Energy companies face scrutiny by competition authorities in merger cases and more recently also through conduct investigations (e.g. the EU energy sector enquiry and similar national investigations).

In these processes it is important for companies to engage early, identify threats and opportunities, and establish a strategy to influence any competition investigation. Key questions in competition cases in energy markets typically concern the existence, or the creation of, a dominant position through horizontal or vertical concentration, for example as a consequence of a merger. Frontier is uniquely placed to advise on all matters relating to competition policy in energy markets since we can combine our sector-specific energy expertise with extensive competition experience.

Frontier has advised on a broad range of merger cases in recent years. For example we have investigated competitive effects and remedies coming from the merger between Veba and Viag and between E.ON and Ruhrgas, whilst we have considered relevant market and dominance claims as part of the joint venture between Verbund and EnergieAllianz and between Elsam and Nesa.

In addition, Frontier has assisted in a broad range of market conduct investigation. This has included work for RWE, ENEL and Elsam. We have also worked with National Grid Transco to gain exemption from regulated TPA requirements and with British Energy to investigate the competitive neutrality of a state aid package.