The European Union (EU) Energy Commissioner Andris Piebalgs said on Monday that he would press ahead with the controversial proposals to split energy giants as more member states have shown their support.
Citing a progress report adopted on Monday by EU energy ministers, Piebalgs said "a significant number" of member states agreed that ownership unbundling is necessary, whereas only "some" remain to be convinced.
In its proposals to reform the EU energy sector, the European Commission called in September for separation of production and supply from transmission networks in a bid to boost competition.
Ownership unbundling is one of the two options preferred by the commission, which will force energy giants, such as RWE and EON in Germany and EDF and Suez in France, to sell off retail distribution networks.
However, the proposal met strong opposition from several EU member states, led by France and Germany.
As the second option, the commission also proposed for "independent system operator," which makes it possible for existing vertically integrated companies to retain network ownership, but provided that the assets are actually operated by a company or body completely independent from it.
But several member states including France and Germany wanted to find a third option, which they were expected to present early next year.
"I am happy to discuss with member states any alternatives that they may propose on unbundling, but I think that these conclusions make it clear that any solution, if it is to meet the strict conditions agreed by all, will have to involve real structural change similar to the commission's package," Piebalgs said.
Piebalgs said he expected an agreement could be made on the reform package in the first half of next year, i.e., before the end of the Slovenian EU presidency term.
"I look forward to working closely with the European Parliament and the Slovenian Presidency to reach an agreement on these proposals during the first half of 2008," he said.
Source: Xinhua
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