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CMS Hasche Sigle secures further victory for energy providers

22/05/2008

European Court of Justice: Favouring site networks unlawful

The European Court of Justice (ECJ) today pronounced its decision in the preliminary ruling proceedings on whether the exemptions granted by Germany to site networks comply with EU law. The ECJ ruled that the exemption provided for under § 110 (1) no. 1 of the Energy Management Act (Energiewirtschaftsgesetz) releasing site networks from their obligation to grant third energy suppliers net access is incompatible with the European Electricity Acceleration Directive.

"Today's ECJ decision has far-reaching significance for the energy market in Germany. It means that in future shopping centres, railway stations, industrial estates or airports, for example, will have to face competition and allow energy consumers in such locations to purchase their energy requirements from other suppliers. This could mean lower energy prices for such customers," said Dr Christian F. Haellmigk of CMS Hasche Sigle. Under EU law the German regulatory authorities would be required to revoke exemptions which have already been granted.

In October 2006 the Competition Senate at the Dresden Higher Regional Court sought a preliminary ruling from the ECJ on whether the privileged position accorded to site networks under German law was compatible with the Electricity Acceleration Directive. In the initial proceedings before the Dresden Higher Regional Court in which CMS Hasche Sigle acted on behalf of a German electricity provider CMS Hasche Sigle had challenged a site network decision issued by the regulatory authority for the state of Saxony on the grounds that it constituted a breach of EU law. Today's ECJ judgment is the first in which the ECJ has taken a stance in interpreting the European Electricity Acceleration Directive.

Contacts CMS Hasche Sigle

Dr Christian F. Haellmigk
Tel.: +49 (0) 7 11/ 97 64 - 304
E-mail: Christian.Haellmigk@cms-hs.com

Arndt Hellmann
Head of Public & Media Relations
Tel.: +49 (0) 30 / 2 03 60 - 12 08
E-mail: Arndt.Hellmann@cms-hs.com

About CMS Hasche Sigle

CMS Hasche Sigle is one of the leading German law firms with more than 500 lawyers. It covers the entire area of commercial law and provides legal advice to major German and international companies from a wide spectrum of industry. It has offices in Berlin, Cologne, Dresden, Duesseldorf, Frankfurt, Hamburg, Leipzig, Munich, Stuttgart, and in Belgrade, Brussels, Moscow and Shanghai.

CMS Hasche Sigle is a partnership of lawyers and tax consultants; for register details / list of partners see www.cms-hs.com

CMS Hasche Sigle is a member of CMS, an alliance of leading independent European law firms. With over 595 partners, a total of 2,240 lawyers and tax consultants and around 4,600 support staff we advise our clients on legal and tax issues in 28 countries, 48 commercial locations and 56 offices in Europe and further afield.

The nine members of the CMS alliance are CMS Hasche Sigle, CMS Adonnino Ascoli & Cavasola Scamoni (Italy), CMS Albiñana & Suárez de Lezo (Spain), CMS Bureau Francis Lefebvre (France), CMS Cameron McKenna LLP (Great Britain), CMS DeBacker (Belgium), CMS Derks Star Busmann (the Netherlands), CMS von Erlach Henrici (Switzerland) and CMS Reich-Rohrwig Hainz (Austria).

These nine law firms also have close links with the The Levant Lawyers at their locations in Beirut, Abu Dhabi, Dubai and Kuwait.

For further information on CMS Hasche Sigle see www.cmslegal.com.

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Portrait ofChristian Friedrich Haellmigk
Dr. Christian Friedrich Haellmigk, LL.M. (College of Europe)
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Stuttgart