Swiss Competition Report – 2nd Quarter 2006

Merger Control

No effective competition in the market for electricity transportation – the Appeal Commission clears the Swissgrid merger

Seven Swiss electricity companies intend to concentrate the exploitation of their (high tension) electricity-carrying network under a common company "Swissgrid". In a decision dated 7 March 2005 (Decision of the FCC of 7 March, Swissgrid, in RPW 2005/2, 347), the FCC cleared the operation subject to the following conditions; (i) Swissgrid is to guarantee non-discriminatory access to its network; (ii) Swissgrid is to publish the fees and conditions of use of its network; (iii) Swissgrid group must provide cost accounting in relation to their high tension network; (iv) Swissgrid group shall not commercially produce, distribute or sell electricity; (v) Swissgrid board members and directors are prohibited from being members of the management of other electricity companies active in the production, distribution and sale of electricity.