The Christian Democratic Union has announced plans to push for a new competition law for the German energy sector. The CDU have already used their majority in the parliamentary upper house to veto the existing proposed law and refer it to an inter-parliamentary mediation committee.

Their concerns cover the process for managing network access charges and echo concerns of utilities who say they need clarity in order to plan future network investments.

The law, to be adopted by early July, is aimed at allowing regulatory supervision of network access charges, bringing Germany in line with European Union. The law will install a new regulator to supervise utilities with plans to introduce incentives by mid-2006 to make transmission grids more efficient.

CDU support for a revised bill follows defeat for the ruling government coalition in a state poll in late May that could end a year-long stalemate over the legislation.