05.03.2010
Four companies frequency auction

26.02.2010
Efficient sale of renewables

26.02.2010
Access possibilities to operations control centres

25.02.2010
Protect consumers from unsolicited telephone calls

23.02.2010
Rate proposal for hybrid letter mail approved

10.02.2010
Gas sector - Capacity management

29.01.2010
Fines for unlawful telephone advertising

25.01.2010
Reliability of the German electricity

06.01.2010
Energy - Investment budgets

05.01.2010
Rail infrastructure

Four companies admitted to frequency auction

A total of four applicants have been admitted to auction in connection with the admission procedure for frequency auctions in the ranges 800 MHz, 1.8 GHz, 2 GHz and 2.6 GHz for wireless network access for the provision of telecommunication services. They are the following companies:

Erste MVV Mobilfunk Vermögensverwaltungsgesellschaft mbH (E-Plus)

Telefónica O2 Germany GmbH & Co. OHG

T-Mobile Deutschland GmbH

Vodafone D2 GmbH

One applicant withdrew its application for admission to the bidding procedure. Another applicant did not meet the requirements for admission to the bidding procedure; therefore the application had to be rejected.

The auction is due to be launched on 12 April 2010 at 1 pm at the offices of the Federal Network Agency, Canisiusstraße 21, 55122 Mainz, Germany.

New rules for the efficient sale of renewables

Kurth: "Transparent trading will open up new oppurtunities"

The Federal Network Agency's implementing ordinance on the Equalisation Mechanism Ordinance took effect on 27 February 2010. It sets the rules for the sale of electricity for which tariffs are payable under the Renewable Energy Sources Act.

"Our implementing ordinance will make the sale of electricity on the exchange transparent and cost-effective. This is another important step in integrating renewables into the market. Transparent trading will open up new opportunities for renewables", Agency President Matthias Kurth, declared.

The Equalisation Mechanism Ordinance, which became effective on 1 January 2010, requires the transmission system operators to sell all the electricity from renewables to the exchange. The revenues obtained on the exchange (forecast for 2010: 4.5bn euros at an average price of 5.37 ct per kilowatt-hour) are not enough, however, to cover the expenditure for the tariffs set in the Renewable Energy Sources Act and the TSOs' operating costs for renewables (forecast for 2010: 12.7bn euros). The forecast deficit of 8.2bn euros will be passed on by the TSOs in the form of a renewables surcharge to the power suppliers and thus ultimately to the consumers. For 2010 the surcharge will be 2.047 ct per kilowatt-hour.

Negative prices as signals

As the market players will first have to adjust to the new system of selling electricity from renewables to the exchange, the implementing ordinance does not require the TSOs in 2010 to sell this electricity at any price. In certain exceptional cases, they can set price limits so as to avoid selling on the exchange at highly negative prices.

"If large volumes of electricity from renewables are sold on the exchange, negative prices, in principle, are an important signal for conventional electricity producers and consumers to adjust their own offers and requirements to the situation on the market. The energy industry is called upon to integrate the new renewables sales system into its procurement and sales strategies. For instance, traditional producers should examine the extent to which they can reduce generation when negative prices are expected. Our new rules will ensure that negative price peaks, which cannot be explained by rational behaviour from the market players, can be avoided. This is chiefly in the consumers' interest, so that they are not unnecessarily burdened by the renewables surcharge", Kurth declared.

Tariffs do not have to be paid for electricity when the prices are negative, but traders are even given a premium, equivalent to the level of the negative price, for taking electricity. Negative prices can be expected whenever demand for electricity is low and there is excess supply, for instance, from high wind input.

Incentive system for TSOs' renewables operating costs

The Agency's new rules also create incentives for the TSOs to reduce their renewables operating costs. These encompass, above all, expenditure on portfolio balancing energy. TSOs that handle the sale of electricity more efficiently, for instance through using more exact forecasts, will benefit from the efficiency gains achieved.

"Three quarters of the costs saved as a result of efficiency gains will benefit the consumer via a lower renewables surcharge, and TSOs can keep the remaining quarter. This is a typical win-win situation for TSOs, consumers and the environment", Kurth stressed.

The implementing ordinance contains further detailed arrangements enhancing the transparency of the renewables surcharge, for instance, specific requirements for maintaining separate accounts. It also creates the basis for a possible transfer of renewables sales to third parties.

"The Agency will present a report at the end of 2011 at the latest, evaluating the experience gained in particular with the transfer of sales to third parties. In the medium term the integration of renewables into the electricity market must be vigorously continued and other market players also given the chance to sell larger volumes of renewables", Kurth declared.

The implementing ordinance, issued in conjunction with the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety and the Federal Ministry of Economics and Technology, can be viewed along with further information on the Agency's website at www.bundesnetzagentur.de.

Competitors of the DB Group gain access possibilities to operations control centres

Kurth: "Unlawful information advantage eliminated"

The Federal Network Agency has just obliged DB Netz AG to grant interested competitors of the DB Group access to its own operations control centres. The company is now required to outline in a concept the criteria according to which other railway undertakings can obtain workstations for dispatchers within the operations control centres. It also specified that DB Netz AG is obliged to provide railway undertakings with a continuous overview of rail traffic on the routes, e.g. in the form of a state-of-the-art Internet system so that the decisions taken by DB Netz AG’s dispatchers at the operations control centres can be closely monitored.

The day-to-day running of rail traffic on DB Netz AG’s rail network in Germany is monitored and dispatched by the Network Control Centre in Frankfurt am Main and by seven regional operations control centres. The Network Control Centre is a higher-ranking body than the regional operations control centres. Every day deviations from timetables occur as a result of disruptions and irregularities. In these situations, dispatchers at the operations control centres decide in which sequence the trains are to travel. For instance, they may arrange for the passenger trains to be overtaken or for extended downtimes of freight trains which result in delays. Up to now, the operations control centres have been staffed only by dispatchers of DB Netz AG together with staff of DB Netz AG’s subsidiaries DB Regio, DB Fernverkehr and DB Schenker meaning that dispatchers of other railway undertakings have not had any access to the operations control centres.

“DB Netz AG’s subsidiaries frequently receive more detailed information more promptly than their competitors owing to the procedure adopted so far. This offers them considerable advantages regarding their own punctuality and costs. We rate the current arrangements as unlawful also in terms of their potential discriminatory impact, for instance owing to the fact that DB Netz AG’s subsidiaries are given preferential treatment in reducing delays, and have thus obliged DB Netz AG to open its operations control centres. This means the unlawful information lead has been eliminated”, Matthias Kurth, President of the Federal Network Agency, said.

Before taking the decision, the Federal Network Agency had conducted numerous talks with DB Netz AG, railway undertakings and international infrastructure managers. The main purpose of the talks was to explore ways of implementing third-party access in technical and organisational terms.

This recent decision coincides with a notice issued by the Federal Railway Authority (EBA), in which it too declared the current arrangements unlawful, albeit on a different statutory basis. The Federal Network Agency also obliged DB Netz AG to open its operations control centres to third parties. The concerted action by the Federal Network Agency und the Federal Railway Authority demonstrates the close and successful cooperation between the two bodies.

DB Netz AG has been given six months to implement the measures. In the next two years, the Federal Network Agency will be examining whether the measures imposed are sufficient for guaranteeing transparent and nondiscriminatory train services.

Federal Network Agency has cracked down on “Friedrich von Haber” and “Carmen Götz” telephone spam

Kurth: “Measures will protect consumers from paying for unsolicited telephone calls”

In order to protect consumers from spam telephone calls promising prizes, the Federal Network Agency was once again quick to respond to the most recent spam waves. Shortly after receiving the first complaints from consumers who had received unsolicited telephone calls promising prizes, the Federal Network Agency had the relevant call numbers disconnected. At the same time, it imposed a ban on billing and collecting for any such call numbers that had been used to advertise prize promises. These bans regularly apply from the moment these numbers are first reported to the Federal Network Agency.

Since the beginning of the year, consumers throughout the Federal Republic of Germany have been harassed by telephone calls in which the person called hears a pre-recorded message asking him/her to call back a range of (0)900 call numbers charging different premium rates in order to claim his/her prize, which could be a BMW Coupé, including petrol money and insurance, or EUR 30,000 in cash.

The calls were made without the explicit consent of the persons called, which is a statutory requirement. They therefore regularly represent a violation of the Unfair Competition Act and are illegal. In addition, the premium rates which end consumers are charged for making calls to the (0)900 call numbers being advertised were not indicated even though this is required under the Telecommunications Act. Last but not least, the spam calls violated statutory regulations by withholding identification of the calling party.

“The Federal Network Agency will continue to consistently leverage all the possibilities of preventing telephone spamming that it has at its disposal. We will not tolerate consumers being harassed by unsolicited telephone calls promising prizes,” said Matthias Kurth, President of the Federal Network Agency.

“The ban on billing that has been imposed means that charges for calls made to the (0)900 call numbers used may no longer be invoiced for the duration of the ban. If consumers have already received invoices, the ban on collection also applies, meaning that the charges for these calls may no longer be collected. These measures implemented by the Federal Network Agency will protect consumers from having to pay unjustified charges,” Mr. Kurth said.

If the charges for calls are invoiced despite the ban or the consumer has already paid the charges invoiced, the ban on billing and collection will not apply directly, however. In these cases, consumers are advised to consult a consumer protection agency or a lawyer in order to request a refund from the network carrier.

Two companies that have their registered office in Birmingham, UK, are responsible for the current spam calls promising prizes. This is irrelevant in terms of the measures implemented by the Federal Network Agency to prevent this kind of telephone spamming as the Agency’s measures are directed primarily against German network operators and the parties issuing invoices. All of the call numbers which consumers had filed complaints against had been activated by the same network operators.

So far, the following call numbers have been disconnected and have had a ban on billing and collection imposed against them:

(0)9005 040 930; (0)9005 050 450; (0)9005 060 960; (0)9005 080 400;
(0)9005 454 501; (0)9005 455 800; (0)9005 560 060; (0)9005 560 090;
(0)9005 570 040; (0)9005 590 030

As a preventative measure, the following call numbers belonging to the British companies responsible were also disconnected before they had actually been used to make any calls for advertising purposes:

(0)9005 060 380; (0)9005 077 600; (0)9005 080 501; (0)9005 099 200;
(0)9005 099 400; (0)9005 105 118; (0)9005 105 119; (0)9005 105 134;
(0)9005 106 540; (0)9005 454 504; (0)9005 455 600; (0)9005 560 077;
(0)9005 659 500

Interested consumers can obtain more detailed information – especially about the specific periods of bans on billing and collection imposed – from the “Latest information” and the list of measures published on the Federal Network Agency’s website at: www.bundesnetzagentur.de 

“We wish to thank all consumers for so swiftly providing us with such comprehensive information about telephone calls making prize promises. This enabled us to respond immediately and effectively by disconnecting the call numbers used for advertising purposes. We no longer require any further information in relation to the above-mentioned call numbers as the measures have already been brought to a conclusion,” Mr. Kurth said.

The Federal Network Agency hopes consumers will appreciate that it is unable to send a letter of response to each individual consumer owing to the large amount of information it has received on the call numbers that have already been disconnected. This also ensures that other cases involving the illegal use of telephone numbers which come to the Federal Network Agency’s attention can be cleared up swiftly and that suitable measures can be implemented to put an end to telephone spamming once and for all.

“Consumers can also take precautions themselves by being both economical and careful in handling their personal data in day-to-day life. This applies in particular to being most selective about who they give their telephone number to. We advise consumers who are being solicited to call an (0)900 call number promising prizes not to call back the premium rate number,” Mr. Kurth explained.

Rate proposal for "hybrid letter mail" approved

Kurth: "High potential for innovative products"

The Federal Network Agency has today approved the rates for hybrid letter mail as proposed by Deutsche Post AG (DP AG). The rate of 46 cents for standard hybrid letters which was submitted for approval covers only conveyance and delivery services.

The letters sent by customers are accepted via DP AG's online portal. They are then printed, enveloped and stamped, and finally Deutsche Post Com GmbH, a subsidiary of DP AG, hands them in to DP AG's mail sorting centres for conveyance and delivery. The saving of nine cents compared to the price of 55 cent for standard letters results from the fact that Deutsche Post Com GmbH regularly submits high volumes of mail.

The total price payable by the customer comprises three components: the price for mailing a letter electronically, the price for mail preparation services – printing, enveloping and franking – and the price for conveyance and delivery, the latter being subject to approval.

"The approval of the rate for hybrid letter mail marks the start of the provision of electronic letter mail services by Deutsche Post AG. Digitalisation is making inroads into this area, too, and it will fundamentally change written communication. This field offers high potential for innovative products", Matthias Kurth, Agency President, declared.

DP AG's E-letter will come in two varieties. The first one is a fully electronic letter, ie the letter is both mailed and delivered electronically. Alternatively, the "hybrid letter" can be used where electronic delivery is not requested or not possible. In this case, electronic mailing is combined with physical delivery to the addressee.

As the rates have been approved now, DP AG will initially run a pilot scheme in which hybrid letter mail services will be offered to business and personal customers. The service is planned to be made available to all consumers in late summer.

Federal Network Agency prepares to reorganise capacity management in the gas sector

Kurth: "Added boost for competition"

The Federal Network Agency today opened proceedings for determinations on the reorganisation of gas capacity management. Being able to book and use capacity is essential if there is to be easy access to the supply networks. An innovative approach to the access rules will further improve the general conditions for competition in the gas market.

"At the moment, an appreciable part of demand for firm capacity cannot be met. This acts as an entry barrier for new competitors. Bookable capacity is a scarce resource, particularly at market area borders and national borders. Yet at the same time, the networks are often underused technically", Agency President, Matthias Kurth said, describing the situation on the gas market.

The planned new arrangements are chiefly concerned with the introduction of capacity bundling, capacity product standardisation and improvements in the short-term offer of firm capacity.

At present, shippers still have to state the points at which their gas will enter and exit the market area. In future, these entry and exit points will be integrated to the greatest possible extent. This will give the transmission system operators (TSOs) more scope to manage the networks in line with the physical aspects. Above all, it will make it easier for shippers to sell their gas in the directly adjacent market.

Determinations will also be made on the design of the auction rules. Under the current arrangements, capacity has to be auctioned when congestion occurs. The rules for auctioning capacity are to be detailed and standardised for the most part.

And finally, the Federal Network Agency intends to set precise requirements for the contractual framing of capacity rights. This is to improve the possibility of returning unused capacity to the market on a day ahead basis, to enhance shortterm offers.

"Our aim is for the existing infrastructure to be used more comprehensively. Today's contractual congestion, in particular, is to be reduced. Our considerations are firmly embedded in a European strategy, in order to drive international, as well as national, integration of the markets. At the same time, we are preparing the ground for measures that require an amendment of the current regulatory framework. We are looking to increase the liquidity of the wholesale markets at every level, thus giving an added boost to competition", Kurth declared.

The notification of proceedings is published on the Agency's website.

Federal Network Agency imposes fines of EUR 500,000 for unlawful telephone advertising

Kurth: "We will not tolerate the law being broken by nuisance advertising"

The Federal Network Agency has imposed fines in six legal proceedings involving unlawful telephone advertising. In December 2009 and January 2010, fines of up to EUR 500,000 were imposed in a total of nine legal proceedings. This is the first time the Federal Network Agency has actually imposed fines for failure to observe the ban on telephone advertising and the obligation to display the caller’s telephone number.

Since the amendments to the Act against Restraints of Competition and the Telecommunications Act entered into force on 4 August 2009, making unsolicited telephone calls for advertising purposes and suppressing the calling party’s number have constituted administrative offences. The fines have been imposed on the parties commissioning the unsolicited calls as well as on the call centres actually making these calls. In one other case involving civil penalties, the case was suspended owing to a lack of evidence.

"Some companies’ blatant failure to observe the statutory ban on unlawful telephone advertising which has been in place for quite some time now is totally unacceptable. The regulations governing telephone advertising apply without restriction", says Matthias Kurth, President of the Federal Network Agency. "It cannot be tolerated that companies gain a competitive edge by disturbing consumers. By imposing these fines, we are sending out a very clear message that we are not willing to tolerate breaches of the law. It is precisely the companies commissioning these telephone calls that have an even greater responsibility to observe statutory obligations."

Fines imposed for unlawful telephone advertising
In the specific cases at hand, telephone calls were made unlawfully as part of an advertising campaign without the consumers' explicit prior consent to receiving telemarketing calls; some companies had commissioned call centres to make the calls for advertising purposes. These calls were made to advertise a wide range of services and products from the telecommunications and media industry as well as lottery scoops.

"Parties commissioning telephone advertising, too, mustn’t act outside the realm of the law. They are acting unlawfully when they commission third parties to carry out telemarketing campaigns without having the necessary explicit and effective consent of consumers to receiving telephone calls for advertising purposes", Mr. Kurth stresses. "I urge all advertisers – both the companies commissioning telephone calls and the call centres making these telephone calls – to observe the statutory regulations. No excuses will be tolerated."

Under the Act against Restraints of Competition, failure to observe the ban on unlawful telephone advertising may be subject to fines of up to EUR 50,000. The fine notices were preceded by lengthy investigative work. "We thank all consumers who contacted the Federal Network Agency with well-explained complaints and pieces of information", Mr. Kurth stresses. "The Federal Network Agency received over 28,000 complaints about unlawful telephone advertising between July and December 2009 alone. A large number of investigations are still underway.”

Fines imposed for failure to observe the ban on suppressing caller identification
Suppressing identification of the calling party of advertising calls is also subject to fines. In this context, fines were imposed for calls made which suppressed the telephone number of the call centre making the calls and for the companies making the advertising calls displaying a call number that had not been assigned to them. It conceals the identity of the calling party to display the wrong number and to suppress the identification of the calling number. The Federal Network Agency can impose fines of up to EUR 10,000 for advertising calls made that suppress the caller identification.

Pre-recorded telephone announcements not subject to fines
In cases involving so-called ping calls where a call is made and broken off after just one ring, and pre-recorded telephone announcements, it is not possible, even under the new laws, to impose fines of up to EUR 50,000 for unlawful telephone advertising. "However, in these cases, the Federal Network Agency can implement a large number of administrative measures under the Telecommunications Act, for instance, it can disconnect telephone numbers and impose bans on billing and collection for any telephone numbers that are being used illegally", Mr. Kurth says.

Detailed complaints
The Federal Network Agency can only intervene in unlawful telephone advertising if it has received detailed and plausible reports of breaches of the law. Unclear complaints as well as incoherent lists of calls without comment or vague information about calls received frequently lead to nothing. As it is the rights of consumers that are being violated with these telephone calls, the Federal Network Agency depends on obtaining detailed information from the consumers who have received these calls. This information should include exact information about the date and time the call was made and, if applicable, the call number displayed. It is also helpful for the investigative work if consumers can provide the actual name of the calling party, the products and services advertised as well as information about the company making the call and advertising the products and services. As persons filing the complaints may also be required to attend hearings as a witness, the Federal Network Agency also needs their full address details.

"Consumers can also take precautions themselves by being both economical and careful in handling their personal data in day-to-day life. This applies in particular to being most selective about who they give their telephone number to", Mr. Kurth explains.

Reliability of power supply in Germany’s electricity grids remains high

Kurth: "Interruption durations were reduced once again in 2008"

The reliability of power supply was very high in Germany yet again in 2008. The average outage duration in power supply was 16.89 minutes per end consumer in 2008. This is the outcome of reports submitted to the Federal Network Agency by German TSOs on the interruption duration in their power supply grids in 2008, pursuant to Section 52 of the Energy Industry Act. The reports must contain at the very least the time, duration, extent and cause of each individual interruption in power supply. All in all, 846 network operators reported approx. 208,100 interruptions for 871 electricity networks.

The Federal Network Agency subjected the data received to a plausibility check and analysis. The outcome was 813 companies with 834 networks whose data was used according to internationally recognised methods to calculate the value for the quality of power supply in Germany. This so-called SAIDI value (System Average Interruption Duration Index) yields the "average interruption duration in minutes per connected each end consumer".

"The reliability of power supply in German was enhanced once again in 2008. Whereas the SAIDI value was 19.25 minutes per end consumer in 2007, it was only 16.89 minutes per end consumer in 2008, representing an average reduction of more than two minutes in the SAIDI value", Matthias Kurth, President of the Federal Network Agency says.

The calculations were based solely on unplanned interruptions lasting more than three minutes due to atmospheric effects, retroactive impacts originating from other networks or those caused by third parties, and other impacts falling within the network operator’s scope of responsibility. Interruptions due to force majeure are not taken into account. Contrary to 2007, when the hurricane Kyrill led to a significant increase in the number of interruptions reported owing to "force majeure" (16.42 minutes), the value for 2008 was just 1.2 minutes.

The value of 16.89 minutes is once again an improvement over the previous year and demonstrates the high reliability of power supply in Germany compared to its European neighbours (e. g. Austria 2008: 43.69 minutes).

quality of power supply - SAIDI value 2008

Federal Network Agency approves investment budget of around € 4.3bn

Kurth: "We have set positive signals for the much-needed investment in German electricity and gas grids"

In 2009, the Federal Network Agency took a decision on over 200 applications for the approval of investment budgets submitted by gas and electricity companies. All in all, investments totalling around € 4.3bn were approved, around €4 bn of which account for investment in (electricity) transmission grids, approx. € 80 million which account for investment in (gas) pipelines systems and around € 230 million which account for investments in electricity distribution grids.

"Our decisions set positive signals for the much-needed investment in the energy grids and make an important contribution towards enhancing supply certainty in Germany. They also give crucial impetus for growth and employment especially in the current economic climate", the President of the Federal Network Agency, Matthias Kurth, said.

Under the Incentive Regulation Ordinance, transmission system operators may apply for investment budgets for major projects. This may be the case where investments are needed to guarantee the quality of supply, to integrate new power plants into the system and to arrange for the transfer of energy from renewable sources, particularly by means of the connection of offshore wind parks. In accordance with the approval issued, transmission system operators will be able to adapt the revenue cap specified by the Federal Network Agency as part of incentive regulation to the cost of capital incurred by the approved investment projects as from 1 January 2010.

"Our decisions enable transmission system operators to generate a reasonable return on capital. The transmission system operators are now in a position to deal adequately on a safe basis with the system requirements arising from pan- European gas and electricity trading and the desired promotion of renewable energy. This means we have managed to strike the right balance between the conflicting interests of low network charges on the one hand and necessary transmission grid investments on the other" Mr. Kurth said.

In 2008 and 2009, the Federal Network Agency received about 480 applications for the approval of investment budgets. Around 200 applications have already been approved, the remaining 280 are currently being examined. The investment budgets total approximately € 13bn. The majority of the investments applied for worth roughly € 11bn were earmarked for the power sector. Of these, the larger part amounting to about € 9bn involved transmission system operators.

New criteria for notification of intended changes or revisions of statements

Kurth: "Requirements create legal clarity for infrastructure companies"

The Federal Network Agency has now set binding criteria for DB Netz AG that it must follow in its notifications of intended changes to or revisions of its network and service facilities statements. These requirements concern the form and the content of the notifications, price lists included.

"We have often found in the past that the notifications from the rail infrastructure companies on intended changes to or revisions of their statements had considerable shortcomings, shortcomings in the extent and the degree of detail of the notification. This made it much more difficult for us to examine the changes. There was a real risk that this lack of clarity would ultimately hurt rail competition", Matthias Kurth, Agency President, declared. "And so we have laid down binding requirements to avoid such problems in the future. Today's decision for DB Netz AG shows the way forward. It also creates legal clarity for all the other infrastructure companies."

Track and service facilities operators have to submit to the Agency intended changes to or revisions of their statements and their rail infrastructure price lists. The Agency examines these changes or revisions within the space of four weeks and can raise objections if it deems them not compatible with rail regulations on access to infrastructure.

Further information on today's decision can be found on the Agency's website.