Handed down Aug. 11, the fine is the largest imposed on a single company in ÚOHS history.

The ÚOHS found that Transgas, which, in terms of sales, controls 100 percent of the market, offered better conditions for gas sales to its own distribution companies than to distributors of other suppliers in 2005.

Transgas controls six of the country's eight major natural gas distributors and has significant stakes in the remaining two.

In addition to the first infraction, the ÚOHS found that Transgas has been telling its distribution companies where they can sell natural gas, preventing competition among them.

"Under such conditions, no competition could emerge," said ÚOHS Chairman Martin Pecina, referring to the fact that the natural gas market was liberalized last year in an effort to create competition.

The ÚOHS also determined that Transgas wrongfully restricted competitors' access to its storage facilities. According to Pecina, Transgas charged the highest possible fees for using these facilities and did not differentiate between large customers and small firms and households.

Transgas has two weeks to appeal the decision. If it does, a commission of external experts will investigate the ruling. Pecina would then make a final decision based on the results.

Martin Chalupský, spokesman for Transgas, said the company will carefully study the ÚOHS ruling and then decide whether to appeal.

"RWE Transgas was surprised by this decision," Chalupský said in a press release.

Under communism, Transgas was the country's only natural gas supplier. The company was privatized in 2002, when RWE Gas of Germany acquired a 100 percent stake. Last year, it netted 5.2 billion Kč, 32 percent less than in 2004.

The government is taking steps to liberalize the natural gas market, in line with European Union directives. Starting this year, all customers, except for households, can choose their natural gas suppliers. The same will apply to households as of Jan. 1, 2007.

Competition has been slow to catch on. Though large customers could begin choosing their supplier in 2005, in reality they were unable to find alternatives to Transgas and ended up paying more than they had before.