BGH: Obligation to Transfer Gas and Electricity Grid after End of Concession

Energy utilities are obliged to comply with previous contractual agreements to transfer ownership for local gas and electricity grids when the concession ends, the Federal Court of Justice (Bundesgerichtshof – BGH) decided on 29 September 2009. In two decisions (no. EnZR 14/08 and EnZR 15/08) the court held that the Energy Act amendments in 1998 and 2005 did not change the contractual obligations to transfer the grids.

The decisions are of great practical relevance as many concession agreements with municipalities are due to expire in the next years.

Source: Press release Bundesgerichtshof no. 195/09 of 29 September 2009

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