Update of the sector inquiry on the functioning of the gas market in the Slovak Republic

In 2010 the Antimonopoly Office of the Slovak Republic published sektorovú správu o fungovaní trhu so zemným plynom v SR(Sector Inquiry on the Functioning of the Gas Market in the Slovak Republic), which described the situation in the gas market in the Slovak Republic in terms of different levels and market players. In more details, the inquiry focused on the assessment of situation and state of competition in the supply of natural gas to end users, together with the assessment of specific factors influencing its development.

AMO re-analysed the developments in the market and it has issued the Update of the Sector Inquiry on the Functioning of the Gas Market in the Slovak Republic, which aim is to describe the development in gas industry since 2010 and update the information which has undergone more significant changes. The previous inquiry stated that the recent development of competition was rather slow, despite the opening of the market for the supply of natural gas to end users, thus the Office has focused mainly on this part of the market.
Based on the findings it may be concluded that the total market share of Slovenský plynárenský priemysel, a.s. („SPP“), as a long-term leader in supply of gas to end users, has declined due to increasing competition. Its market share for all categories of end users gradually declined from nearly 85 % in 2010 to 63 % in 2013. This was due to entry of new players and also due to strengthening of the position of existing competitors, which indicates growing competition in this economy area. Since opening of the market, the biggest changes have occurred in the group of industrial consumers, on the other hand, the smallest decline of share of the company SPP has occurred in the category of small enterprises.

The shift has also occurred in the composition of the final price. The proportion of the price components, where the competition exists, increases. On the other hand, the proportion the components which are provided by so called natural monopolies (distribution and transport) has gradually declined. This trend is positive for end consumers, as growing part of the price is influenced by competition, which has been gradually growing.

Despite some positive changes and recent developments in the gas sector, the Office will continue monitoring and assessing the changes related to competition due to the importance of this sector. It will also focus on the impact of price regulation on competition for those categories of customers for which the gas supply remains still regulated.
Last update:16.07.2015