Commission warns Distrigas over market dominance

17 May 2006

The European Commission (EC) on Tuesday 16 May accused Distrigas of abusing its position of dominance in the supply of gas to Belgium, writes Jon Eldridge. The Commission said it sent a statement of objections to Distrigas, part of the Suez Group, on 10 May outlining its concerns that the gas company was preventing new suppliers from entering the Belgian gas market. According to the statement, a significant proportion of the Belgian gas market was unavailable for competition for long periods because Distrigas has concluded long-term gas supply contracts with many of its industrial customers, in violation of EC Treaty rules on abuse of a dominant market position. Intra-group sales within the Suez group make up a large proportion of other gas sales in Belgium, adding to the difficulties new market entrants face. Information uncovered in the Distrigas case will not effect the EC’s inquiry into the proposed merger of Suez and Gaz de France. Distrigas has four weeks to reply in writing to the statement of objections. A version of this article was published on ICISnews.

 

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