Finance
Growing clout of top suppliers poses risks to German power market, cartel office says
Published by Global Banking & Finance Review®
Posted on February 19, 2026
2 min readLast updated: February 19, 2026
Quick Summary
Germany's cartel office says RWE and LEAG exceed dominance thresholds as flexible capacity wanes, raising prices and import dependence. EnBW is near the line; tenders could curb concentration.
German Watchdog Warns Rising Power Supplier Clout Threatens Market
BERLIN, Feb 19 (Reuters) - Changes in Germany's power market have increased the clout of top producers RWE, LEAG and EnBW, the country's cartel office said on Thursday, increasing supply risks and reliance on imports.
The Bundeskartellamt's annual report, based on data from May 2024 to April 2025, found that Germany's shift away from flexible power supply sources - such as coal and nuclear - had left remaining plants increasingly crucial for meeting demand.
The country temporarily reactivated reserve stations during an energy crisis sparked by Russia's war in Ukraine, but from early 2024 returned to its original path to phase out coal.
Market Concentration and Supply Risks
FEWER FLEXIBLE PLANTS, HIGHER PRICES
5% indispensability benchmark
Dominance Thresholds and Key Players
The cartel office said RWE and LEAG were found to exceed the threshold for market dominance, defined as being indispensable for demand in more than 5% of hours per year. EnBW was close to the threshold but did not surpass it.
Price Effects and Import Dependence
The report warned that a shortage of dispatchable capacity tends to lead to higher prices and increases dependence on large suppliers, while imports are needed more often, especially during periods of low wind and solar generation.
In almost a quarter of all hours during the reporting period, domestic demand could only be met with imported electricity.
Tenders and Long-Term Competition
TENDERS AND COMPETITION OUTLOOK
"The results of the upcoming power plant tenders will have a significant impact on market concentration for decades to come," Bundeskartellamt President Andreas Mundt said in a statement. He said tenders should be used to reduce existing market power and suggested capping awards to diversify ownership.
Review of Late-2024 Price Spikes
Investigations by the cartel office and the Federal Network Agency into price spikes in late 2024 found no evidence of abusive withholding of capacity, the office said.
(Reporting by Linda Pasquini. Editing by Kirsti Knolle and Mark Potter)
Key Takeaways
- •Bundeskartellamt says RWE and LEAG exceeded the dominance threshold; EnBW was close but did not surpass it.
- •Retirement of flexible, dispatchable plants heightens dependence on large suppliers and raises price risks.
- •Imports are needed more often to meet demand, especially during low wind and solar output.
- •Upcoming power plant tenders will shape market structure for decades; capping awards could diversify ownership.
- •Regulatory probes into late-2024 price spikes found no evidence of abusive capacity withholding.
Frequently Asked Questions about Growing clout of top suppliers poses risks to German power market, cartel office says
1What is the main topic?
Germany’s cartel office warns that market concentration in power generation has increased, with top suppliers gaining clout as flexible capacity declines and import reliance grows.
2Which companies are highlighted and why?
RWE and LEAG exceeded the dominance threshold based on hours when their capacity was indispensable; EnBW was close to the threshold but did not surpass it.
3Did regulators find manipulation during 2024 price spikes?
Investigations by the Bundeskartellamt and Federal Network Agency into late-2024 price spikes found no evidence of abusive withholding of capacity.
