Monday, March 3, 2008

E. ON creates a surprise that he was willing to cede its network

The German company E. ON electricity has created the surprise by expressing its willingness to sell its network of high-voltage lines in Germany to comply with requests from the European competition which oppose yet Berlin to Paris.

The information was revealed by the Frankfurter Allgemeine Zeitung on Wednesday evening.

The four main power companies and German Chancellor Angela Merkel hitherto united to oppose requests the European Commission, backed by countries such as Denmark, the Netherlands or the United Kingdom, a "Separation heritage" of production and distribution in the energy sector.

Berlin and Paris, who oppose this challenge to the vertical integration of energy production, have proposed with six other EU countries (Austria, Bulgaria, Greece, Luxembourg, Latvia and Slovakia) an alternative whereby the effective separation of production and distribution would be done by national regulators guaranteeing free competition. For more details

The announcement by E. ON its intention to sell its high-voltage lines and some power plants in Germany may call into question the strategy.

"E. ON proposes to undertake to sell its electricity grid to an operator who has no interest in the production or distribution of electricity," the company said in a statement.

The European Commission welcomed the proposal of E. coli. ON assign its distribution network as well as the equivalent of 4,800 megawatts of generating capacity.

"Under this procedure, the commitments (made by E. ON) would be legally binding after a decision of the Commission (in return) would withdraw its anti-competitive actions taken against E. ON", said the press release.

The Commission considers that the detention of distribution networks by operators independent producers will facilitate competition by providing better access to consumers and thus contributing to the decline in energy prices.

Vattenfall Europe, the German subsidiary of the Swedish group Vattenfall said that all options were being studied for its distribution network, including an assignment.

On the other hand, and RWE Energie Baden-Wurttemberg, respectively the second and third largest producer of electricity in Germany, reaffirmed Thursday their intention to retain their distribution network.

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home

Blogs Directory Activism Blogs - BlogCatalog Blog Directory Free Blog Directory Buzzer Hut | Promote Your Blog Blog Directory EatonWeb Blog Directory