Published by Global Banking & Finance Review®
Posted on February 19, 2026
2 min readLast updated: April 3, 2026
Add as preferred source on GoogleGermany'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.
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.
FEWER FLEXIBLE PLANTS, HIGHER PRICES
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.
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 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.
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)
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.
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.
Investigations by the Bundeskartellamt and Federal Network Agency into late-2024 price spikes found no evidence of abusive withholding of capacity.
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