Anti-Trust Issue

August 2007

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EC Commences Anti-Trust Proceedings Against GDF and Eon

On 16^th May 2006 the European Commission carried out unannounced inspections at the premises of gas companies in five member states. They had reason to believe that gas companies in Germany, Italy, France, Belgium and Austria may have violated EC-Treaty antitrust rules that prohibit restrictive business practises and/or abuse of a dominant market position.

Following on from those inspections the European Commission (EC) decided to start formal anti-trust proceedings against E.ON, a German energy company, and Gaz de France, a French gas company, for a possible breach of the EC Treaty’s rules on restrictive business practices (Article 81).
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	STORY
	TRAINING
	PRICES
	MPHASIS!
	FEATURE

Hello and welcome to the NEW LOOK August issue of MZINE, our free monthly e-newsletter.  

This month we are taking a look at the anti-trust proceedings the EC have commenced against GDF and EON see main STORY. At PRICES  we take a look at the Gas and Power Forward Curve, whilst at MPHASIS Derek relates a fairy tale at Milford Haven! 

Our public course dates for 2007 have now been published and can be found at TRAINING.
 

TRAINING

All of our training courses can now earn, participating solicitors, CPD points from the law society. Attendance at any of our events may also contribute to meeting accountancy CPD requirements under the terms of the ICAEW’s CPD policy. Please visit www.icaew.co.uk/cpd for the ICAEW's CPD policy details.

Over the next few months the following one-day events are being held in Oxford or London, UK. For an at a glance view of our 2007 public training dates please visit: http://www.mjmenergy.com/PCG2007.htm

More information about these courses can be found by clicking on the course title below  or you can visit our new look public courses training site at http://www.mjmenergy.com/publictraining/enter.html. Alternatively you can contact me by email or phone +44 (0) 1235 553917.

Our public courses can also be held at your location, for your company, or they can be tailor made to your requirements. If you want to find out more contact our Training Manager Nick White  +44(0) 1235 211161 and get ahead of the rest.

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PRICES
Forward Curves

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MPHASIS!
for the lighter side of life!

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FEATURE

Price Dispute Between Russia and Belarus Continues.

Seven months on and Belarus find itself running foul of energy giant Gazprom yet again. This time Russia’s neighbour is given an ultimatum to settle their gas debt with Gazprom or find that its gas supply is cut by 45%! 

This new dispute is really a continuation of the price increase dispute imposed on Belarus by Gazprom earlier in the year, where the price of gas to Belarus was increased from $47 per 1000 cubic metres to $100 per 1000 cubic metres. (See January’s MZINE) The deal was that Belarus could pay the old price for the first half of 2007 and then make up the balance by 23rd July of $456 million.  

But it appeared that Belarus did not pay the lump sum when it had become due and talks between Belarus and Russia failed to reach a settlement. So Belarus was given until 3^rd August to settle the debt or have their gas supply reduced. 

Knowing the response that could be expected from Belarus, Russia has made it clear that any attempt to siphon gas off from the transit pipes to Europe would be a criminal activity and they would seek legal justice should Belarus resort to such measures, instead of paying the debt. Gazprom also notified their European customers of a possibility of supply interruptions by Belarus. 

In an attempt to buy more time, Belarus paid part of its debt, $190 million, to Gazprom just as the deadline was expiring. In response Gazprom decided not to cut supplies but to generously give Belarus one more week to complete the payment. The final balance was paid by Belarus on 8^th August and from now on all gas supplied to Belarus will have to be paid in full on a monthly basis. 

According to Gazprom the price that Belarus will pay for gas will increase over the next five years until it reaches the same price being paid by Western Europe. Belarus will now start to believe that Gazprom means this and unless it can source its gas cheaper elsewhere may find gas a commodity that it struggles to afford. 

Written and researched by Paul Cassar, MJMEnergy Ltd

MJMENERGY LTD have provided all the information in this newsletter free of charge to anyone who wishes to read it. We cannot be held responsible for any inaccuracies although all information is believed to be correct at time of publication. Whilst articles published in this newsletter often carry a particular  point of view, publication of them does not imply that we necessarily agree with them. Anyone wishing to contact the editorial team with regards to any of the above articles should email: editor@mjmenergy.com, or phone +44 (0) 1235 553917

Copyright © 2007, MJMENERGY LTD. All rights reserved (but feel free to copy, post, quote, think about or forward on)