Legal uncertainties prohibit major dynamics
New legal and regulatory conditions, established by the German Bundeskartellamt and Bundesnetzagentur, aim to improve the supply and transport of natural gas and intensify competition in the market. Many energy utilities are evaluating the opportunities and risks caused by the new regulatory environment.
However, so far competition from imports has not developed across all of Germany. In some regions, municipal utilities suffer from unfavourable conditions in their gas purchasing contracts - or they have no alternative supplier at all due to a dominant regional incumbent at the wholesale level. And as strategic, operational and legal uncertainties prevent many energy utilities from entering new markets, competition to win new customers is also limited.
To measure the development of this market and the conditions for competition, PA Consulting Group conducted a survey 'Competition in the gas market'. PA asked 110 German regional and municipal energy utilities about the supply and transport of natural gas.
The survey results identify specific areas for improvement. Lawmakers and regulators must further ameliorate the competitive conditions in the gas market and eliminate uncertainties. Energy companies must prepare for increased competition. In particular, municipal energy utilities must strive for a differentiated supply portfolio and continously develop their marketing strategy in order to maintain their market position.
