RWE and E.On are being investigated for a supposed gentlemans agreement which stipulates that neither will try and poach customers in each others supply area. For those who are familiar with the UK setup they will know that we as a nation have been here before. In the 1990's the duopoly of National Power and PowerGen, was not working in the regulators eyes. Furthermore, there were supposed gentlemans agreements and car park meetings where the Pool price was set. In reality these sorts of things do not happen very often and CEO's know that it is best not to leave a paper trail behind.

We will not know whether, further divestment will be forced upon the German power industry or that the world of the EC suggests that collusion has been taking part. We do know that power prices have risen under the duopoly and that emissions prices have been bought religiously by the power players and that the Pool price miraculously seemed to always be high enough to meet financial projections for the UK. Despite sometimes, a mild March and a record high. Players in this market must remember that most gentlemans agreements end in duel.