2024-09-26 13:50 update: 2024-09-26, 20:18
Photo PAP/EPA
The Court of Justice of the European Union (CJEU) has dismissed the appeal brought by Orlen, the largest Polish energy and fuel company, against the European Commission's (EC) decision in a 2015 case regarding unfair pricing by the Russian energy giant, Gazprom.
According to CJEU's Thursday ruling, the EC made the correct decision in 2015 when it obliged Gazprom to scrap its unfair pricing policy towards EU states.
In 2011–2015, the EC reviewed Gazprom's dominant position on wholesale fuel markets in eight EU member-states: Bulgaria, the Czech Republic, Estonia, Lithuania, Latvia, Poland, Slovakia and Hungary.
In April 2015, the EC concluded that Gazprom exploited its advantageous position to impose unfavourable price conditions on five of those countries (Bulgaria, Estonia, Poland, Lithuania and Latvia). Additionally, Russian gas supplies to Poland were to be delivered on condition that PGNiG, the local wholesaler, would allow Gazprom an increased level of control over investments in the Polish section of the Yamal gas pipeline, one of the key gas transit routes through Poland.
Gazprom responded with a formal list of measures that would change its policy, later approved by the EC, which concluded its proceedings in Gazprom's case.
PGNiG, which in the meantime was taken over by and merged with Orlen, was unhappy with EC's decision and appealed against it to the European court. The appeal was dismissed in February 2022 as unfounded, stating that the court discovered no fault in the form or content of the EC's original decision. PGNiG appealed against the decision to a court of higher instance.
In its Thursday ruling, the CJEU dismissed the appeal. The reasons for this ruling included the fact that Orlen did not prove the EC's alleged errors had any influence on the case, and contrary to Orlen's position, the EC appropriately respected the rule of energy solidarity by striving towards free transborder flow of gas and ensuring that gas prices in Central and Eastern Europe were similar to their Western European levels. (PAP)
wpb/jch
