Dutch utility Nuon has announced that it is prepared for the unbundling of its operations into a network business with a broad grid operator, and a production and distribution business.
Nuon has reportedly set up these two companies, which will operate independently within the group, in anticipation of the Dutch Unbundling Act. Until the activities are actually separated, the two companies will operate under a financial holding company, which will be responsible for issues such as consolidation and reporting.
The Unbundling Act requires all integrated Dutch power companies to separate their activities before January 1, 2011. The legislation also requires the grid operator to be a broad operator from July 1, 2008. The operator will operate and be the economic owner of the gas and electricity grids, and perform all management tasks required by these grids.
The broad grid operator within Nuon’s network business will operate under the name of Continuon, with a new name expected to be introduced later in 2008. Before the broad grid operator was established, Continuon contracted out some of its activities to other parts of Nuon. These activities will now be performed by the grid operator itself.
The network business will also perform other grid-related activities, including the designing, building and managing of public lighting through Dynamicom, and complex infrastructure facilities through Tecno. Peter Molengraaf has been appointed to succeed Paul Corton as director of the network business.
The production and distribution business will concentrate on producing, trading and distributing power and heat to large and small users, and also provide additional services and technical innovation. This part of the business will operate under the Nuon brand name.