Greece’s Competition Commission has carried out raids on electricity production and wholesale supply companies on Tuesday as part of an ongoing investigation into potential anti-competitive practices and establishing a price cartel in the country’s energy market.
According to the commission, the inspections aim to determine whether companies have engaged in conduct that could restrict competition, distort prices or undermine the proper functioning of the electricity market.
With support from the Regulatory Authority for Energy, Waste and Water (RAAEY), investigators are examining both the possibility of horizontal collusion between companies and whether a single firm may have abused a dominant market position.
The commission emphasized that the unannounced inspections targeted companies where relevant evidence might be found. However, it cautioned that the raids do not imply that the companies involved have committed violations, nor do they prejudge the outcome of the investigation.
If illegalities are found, the companies involved face heavy fines, possible exclusion from public contracts and — possibly — legal consequences for their executives.
The inspections come after a critical strengthening of the supervisory framework in the energy market, with the aim of ensuring “clean” competition and transparency — between producers, wholesalers and suppliers.
ACER
It is recalled that ACER, the EU’s Agency for the Cooperation of Energy Regulators, in its annual report on the European wholesale market, analyzing the phenomenon of extreme prices that the Greek market was faced with last summer, noted that “it is compatible with limited competitive functioning and possible exercise of market power” and that further investigation is needed.
In other words, ACER is not talking about a simple coincidental price increase, but indicates that the way prices are set may have been reinforced by strategic behavior. It adds that there are indications that require inspection, specifically stating that “the change in the behavior of offers may have contributed to the extreme prices. Further evaluation is required.”
PS Just ask any Greek about price cartels. No raids needed. Since …ages. On every sector.
