RWE Transgas receives record fine

The Czech competition office has issued a record fine of 370 million crowns, the equivalent of around 17 million US dollars, on gas importer and distributor RWE Transgas for abusing its dominant position on the market. The fine is the biggest imposed on a single company by the Czech competition watchdog. According to the office, RWE Transgas discriminated in its gas supply contracts between regional gas distributors which belonged to the company and those which did not. The competition office found that the company, also banned its distribution companies from selling natural gas outside their territory, cutting competition on the market and charged excessive prices for storage of natural gas during 2005. Previously, the highest fine issued to a single company was given to the fixed-line giant Cesky Telecom, which had to pay a fine of 205 million crowns.

Author: Jan Velinger