Uchenna Izundu
International Editor
LONDON, Oct. 24 -- The Department for the Internal Market at the European Commission has written to the German government seeking information on its alleged "golden share" in E.On Ruhrgas AG, Essen, Germany.
Golden shares are preferential company interests held by governments to resist takeovers.
A spokeswoman from the European Commission told OGJ that the German government has a month to respond to its request. She explained that this was "not part of formal proceedings by Brussels," but a letter from one official to another.
Charlie McCreevy, the internal market commissioner for the European Union, has previously stated that the EC does not believe that golden shares, which give the owner rights overriding those of other shareholders, are compatible with the aims of a free energy market.
A spokesman from the German economics ministry told OGJ that the German government does not have a golden share in E.On, the parent company of E.On Ruhrgas, because it does not influence its policy. However, he said the German government may examine a foreign bid for E.On under a special clause issued in 2001 and block the bid if it threatens German energy supplies.
"The clause will expire in 2012," he added. E.On Ruhrgas is the dominant gas supplier in Germany.
The EC has launched infringement procedures in different member states to break the monopolies of large national energy suppliers such as E.On, Electricite de France, and Spain's Endesa.
Neelie Kroes, EC competition commissioner, has stressed that she is prepared to use competition law to create a single energy market and facilitate cross-border mergers. Her department is investigating barriers to gas and electricity competition in the EU. Results will be published by the end of the year.
Contact Uchenna Izundu at [email protected].
