EU Commission wants to unbundle energy companies
The European Commission has adopted a third package of legislative proposals through which it aims to create greater choice of supplier in the gas and electricity sectors. One cornerstone of the Commission’s proposal is that vertically integrated energy players divest of their energy transmission activities. The Commission also proposes to allow an alternative model under which vertically integrated firms would subject control of their network assets to independent system operators (ISO).
Some member states - Germany and France in particular - as well as industry trade associations have criticized the proposal as too interventionist and unnecessary to reach the Commission's objective, instead emphasising the need for greater regional integration.
Frontier (London, Cologne and Brussels) has advised the EU Commission on various aspects of market integration and a number of market players on the design of vertical separation measures. A new bulletin by Frontier discusses key issues of the proposed ISO model.
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