The German federal competition authority, Bundeskartellamt, has today published a Frontier Economics study on its website, alongside several submissions in response to its electricity wholesale market consultation.
Frontier’s study, commissioned by RWE, makes a number of recommendations in relation to product market definition and to the analysis of market structures through so called Pivot Analysis (residual supply index).
In particular, Frontier lays out why renewable and conventional electricity should be regarded as part of the same electricity wholesale market (market for first sale of electricity).
The report also recommends how potential competition from power stations outside Germany can be appropriately reflected in the Pivot Analysis. The work has bearings for any future analysis in merger and conduct investigations in the sector.
Frontier regularly advises parties in relation to competition issues in the energy sector in Germany, the EU and a range of other international jurisdictions.
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