Security of Supply Argument in the Context of EU Competition Law
Article from: OGEL 1 (2010), in Antitrust in the Energy Sector
The security of supply argument can be understood in two very different ways in the context of EU competition law, Articles 101(3) and Article 102 TFEU (ex articles 81 and 82 EC) in particular. It can regarded as coming close to an economic and quantifiable defence based on investment costs and the need to secure the significant relationship specific sunk costs necessary to set up a highly capital intensive natural resource project, be it a greenfield natural gas project or a pipeline project. However, this is not always the case, especially given that gas field production ...