EUOBSERVER / FOCUS - The European Commission has tabled a compromise deal to liberalise the EU's gas sector, bowing to pressure from a group of member states, who firmly oppose the idea of separating gas companies' production and supply wings. Energy experts from all 27 EU states have entered a critical phase in the months-long battle over the commission's furthest-reaching intervention in the energy sector yet, with talks scheduled for almost every day over the coming weeks. The core of Brussels' proposal, known as full ownership unbundling, is to break up EU energy giants - such as France's EDF or Germany's E.ON - by forcing the parent company to sell its transmission networks. The EU's executive argues that control of both supply and transmission makes it harder for new entrants to enter the market and that asset break-up is essential to boosting competition and cutting prices.
The battle over energy liberalisation shifted to the gas sector yesterday (19 May) when Parliament's industry committee threw its weight behind France and Germany in their bid to prevent the forced break-up of large integrated gas groups. Background: In its energy liberalisation proposals presented in September 2007, the European Commission argued in favour of treating gas and electricity markets in the same way, saying energy firms such as EDF and E.ON should split their energy production and transmission businesses - a process known as 'ownership unbundling'. In an explanatory statement, it said ownership unbundling should apply to both because "the fundamental conflict of interest" between energy generation and transmission "applies equally to both sectors". MEPs on the Parliament's industry committee voted on Monday (19 May) to reject a proposed gas directive that would force groups such as Gaz de France and RWE Gas in Germany to sell off their pipelines and storage assets in a bid to force more competition onto EU markets. The vote represents a victory for France, Germany and six other member states which have together proposed an alternative to the Commission's controversial proposal to break up energy utilities, a process known as 'ownership unbundling'.
The battle over energy liberalisation shifted to the gas sector yesterday (19 May) when Parliament's industry committee threw its weight behind France and Germany in their bid to prevent the forced break-up of large integrated gas groups.
Background: In its energy liberalisation proposals presented in September 2007, the European Commission argued in favour of treating gas and electricity markets in the same way, saying energy firms such as EDF and E.ON should split their energy production and transmission businesses - a process known as 'ownership unbundling'.
In its energy liberalisation proposals presented in September 2007, the European Commission argued in favour of treating gas and electricity markets in the same way, saying energy firms such as EDF and E.ON should split their energy production and transmission businesses - a process known as 'ownership unbundling'.
In an explanatory statement, it said ownership unbundling should apply to both because "the fundamental conflict of interest" between energy generation and transmission "applies equally to both sectors".
MEPs on the Parliament's industry committee voted on Monday (19 May) to reject a proposed gas directive that would force groups such as Gaz de France and RWE Gas in Germany to sell off their pipelines and storage assets in a bid to force more competition onto EU markets.
The vote represents a victory for France, Germany and six other member states which have together proposed an alternative to the Commission's controversial proposal to break up energy utilities, a process known as 'ownership unbundling'.
