Mergers - Case 26

Vattenfall/Nuon: analysis of merger effects and geographic market definition of electricity retail markets for small customers in Germany

Planned merger between Vattenfall and Nuon. We assessed on behalf of Vattenfall whether German electricity retail markets for small customers were local or national. For that purpose, we conducted regional price comparisons, analysed price relationships between established electricity suppliers and entrants, and analysed the geographic expansion of electricity suppliers in Germany. Moreover, we analysed the speed of entry. Based on our analysis, we concluded that electricity markets were likely to be national due to ease and evidence of supply side substitution.