16:48 Dec 13, 2008 

“in law, the authority of a court to deal with specific matters. Competence refers to the legal “ability” of a court to exert jurisdiction over a person or a “thing” (property) that is the subject of a suit. Jurisdiction, that which a competent court may exert, is the power to hear and determine a suit in court. Jurisdiction also may be defined as an authority conferred upon a court (thus making it competent) to hear and determine cases and causes. ”

16:23 Dec 13, 2008 

For the asker's further reference: http://www.venice.coe.int/docs/2000/CDL-JU(2000)031-e.asp
"The term "competence" is a synonym term for "jurisdiction". The power of the Court is restricted to decide on (true) conflicts of jurisdiction and not to decide on questions concerning the substantive legality of an act of an authority (VfSlg. 1351/1930). The Court is only authorized to review and to determinate the jurisdictional (formalrechtliche Frage) question whether a court or an administrative authority has to decide a certain matter and not the substantive question of a decision's contents and its legality (VfSlg. 1341/1930)."