The European Commission is planning a series of new measures to be included in the so-called ‘Third Way’ proposals as a means of reaching agreement with eight EU Member States over its controversial unbundling package.
It has put forward conditions under which it would allow integrated utility companies to retain ownership of their power grids in line with the ‘Third Way’ proposal tabled by Germany, France and six other Member States.
Under the Commission’s new proposals, energy companies would have to leave management of their grids to an independent subsidiary, which would have to submit a ten-year investment plan to the national-level energy regulator on an annual basis. It would also have a supervisory body that would make decisions that could have an impact on the value of the utility in question.
The European Commission wants to force large energy firms to sell off their power transmission and gas storage assets, or at least hand over their management to an independent system operator (ISO), in order to increase energy sector liberalization.
In September 2007 it put forward the unbundling plans in its third liberalisation package but met with strong opposition from France, Germany, Bulgaria, Greece, Austria, Latvia, the Slovak Republic and Luxembourg. The eight Member States tabled alternative proposals, known as the ‘Third Way’, which they believe would produce a similar result without the need for unbundling.