EUOBSERVER / BRUSSELS - The European Parliament has approved a watered-down version of an energy package aimed at further liberalising the bloc's electricity and gas markets, while strengthening consumer rights.

Initially targeting full separation of transmission and production activities in energy giants like E.ON or GDF - also known as "unbundling" - the compromise approved on Wednesday (22 April) by the European Parliament gives big energy players the option of keeping the two types of activities, but under stronger supervision.

Electricity transmission networks

The EU goal is to facilitate network access for smaller energy companies without their own grids, as well as to ease up cross-border investments and trade in EU's €300 billion electricity and gas market, which is still fragmented by national barriers.

"The package will give the EU a clear regulatory framework needed to ensure a properly functioning internal market and to promote much needed investment, especially by cross-border and regional cooperation," EU energy commissioner Andris Piebalgs told MEPs in a plenary debate ahead of the vote.