Germany has announced changes to rules governing the way companies buy access to gas pipeline networks on Friday, in a move designed to boost competition and help bring down energy bills.
Siding with two new suppliers, which had complained the existing rules made it hard to gain a foothold in mainland Europe's biggest market, grid regulator Bundesnetzagentur said Germany will adopt a system similar to that used in Britain.
The authority said new gas contracts must be agreed in line with the new system. Existing contracts must be adjusted under various deadlines up to October 1, 2007 at the latest.
Germany's energy market is technically open to competition but new suppliers have found it difficult to force their way in because of the dominant position of big utilities. "Bundesnetzagentur has decided that the so-called point-to-point shipment model must no longer be used because it contravenes the law," the authority said.
Germany will fully adopt an entry-exit system, removing an existing option for companies to use a point-to-point model. The entry-exit model allows companies to buy separate contracts for bringing gas onto, and taking it off gas grids, making it easier for new suppliers to trade.
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