The European Commission will draft a new compromise plan on energy market liberalisation by 10 May, a spokesman for Andris Piebalgs, the European energy commissioner, said on Wednesday (7 May).
The Commission is aiming to overcome French and German opposition to ownership unbundling – in which energy generating firms would be forced to sell off their shares in transmission networks.
The Commission's compromise is expected to be based on a Franco-German proposal for a third option. This alternative would allow firms to retain shares in transmission businesses, subject to tough measures to ensure independence from the parent companies.
Effective indpendence
When directors-general from energy ministries from all 27 member states met in Brdo, Slovenia, on Monday (5 May), they agreed the outline of a possible compromise. The deal would include “effective independence of network operators as regards investment decisions and grid management based on a strong role for regulators while preserving the financial interests of parent companies”, according to Slovenian presidency officials. This is seen as responding to German concerns about transmission businesses enjoying too much autonomy over investment decisions.
The national officials also agreed that there should be effective separation of generation and transmission for the gas as well as the electricity market – contrary to the views of Italy and other countries. There was also agreement to take into account minority shareholdings, a concern for Finland. Overall, the meeting agreed on the need for “more effective and independent regulatory oversight”.
On Tuesday (6 May), MEPs on the industry, transport and research committee boosted the momentum of liberalisation by backing a report which identifies ownership unbundling as the only route to more competition on the energy market. The report will be voted on in the European Parliament's plenary session in June – but could be weakened by French and German MEPs who share their governments' opposition to unbundling.
