French energy users group hits out at power, gas producers

London (Platts)--10Aug2004

Power and gas producers have been behaving anti-competitively and a
liberalized market would lead to higher prices, according to a French energy
users association. 

Hubert Gentou, head of markets at the Union des Industries
Utilisatrices d'Energie, said the European Commission was misguided in opening
up energy markets. "We don't see new players bringing attractive competition,
we see new players coming up with high prices," he said. "The members of the
gas club can play a very similar game to the members of the electricity club.
They can increase the price without increasing market share." Gentou said
producers dominated markets and were increasingly beyond the reach of French
and EC regulators. "The producers have all the market pull. We have producers
being active outside Europe, outside the directive. Ruhrgas, Gaz de France,
RWE--when they purchase state-controlled companies in the east, they increase
their relationship with Gazprom and increase their control of the pipeline,"
he said. Gaz de France declined to comment.

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