Unbundling victory in sight

28th February 2008

EURO-MP Eluned Morgan, the European Parliament's rapporteur on the Electricity Directive has welcomed news that EoN - one of the EU's largest energy companies - is considering selling off its transmission grids and pipelines.

The Labour MEP has been pushing for a complete division of the energy generators from the transmission grids (full ownership unbundling).

ELUNED MORGAN said:

"This news has come at a crucial time - on the day that the European Energy Council is meeting to discuss whether all EU companies should follow this route.

"The fact is that companies who own both the energy grids and generation have a vested interest in keeping other companies out of the market, it is only through a full separation of these that the European Union market in electricity can truly develop.

"This move by EoN will put considerable pressure on other companies to follow suit and will hopefully weaken the resolve of the minority of Member States, including Germany, who have been resisting further change and arguing for a very weakened version of unbundling."

ELUNED MORGAN added:

"Any position which did not conform to the total separation of networks from supply could not guarantee fair play across Europe's energy markets.

"At last these monolithic companies are responding to public pressure which is loosing patience with these public utilities. For year on year consumers have seen their prices go up whilst shareholders are lining their pockets with excessive profits."