ENERGY GIANTS BEAT EU

Note to EU: Don’t feel bad, the energy giants beat everybody. Look what they're doing to the Democrats in Washington this week.

EU States Against Breaking UP Energy Firms
June 8, 2007 (UPI)
BRUSSELS, June 8 (UPI) -- In a victory for France and Germany, a majority of

WHO
European Commission (EC), the European Union (EU) executive body;
The European Union (click to enlarge)

WHAT
The EC advocates “ownership unbundling” which would separate energy utilities from distribution networks.

WHEN
Some EU governments tentatively accepted the “unbundling” concept in March but member states interrupted the move toward it during the week of June 1.

WHERE
This meeting was at EU administrative headquarters in Luxembourg. (Brussels, Belgium, is seat of the European Commission, Council of the European Union and European Parliament.)

WHY
- French energy giant EDF and German giant Eon would likely lose significant assets to “unbundling.”
- The UK is the strongest advocate for “ownership unbundling” but the France/Germany contention – that EU energy giants must remain strong to effectively negotiate with Russian energy giants like Gazprom – prevailed.
- Opposed: Austria, the Czech Republic, Greece, Luxembourg, the Baltic states, Slovakia and Hungary.
- For: the Netherlands and Ireland.
The problem (click to enlarge)

QUOTES
- EU energy ministers: “[There is a] need for action on ... unbundling of network operations from energy production and supply activities…[but it] is only one of a number of measures for accelerating the dynamics of competition."
- German Economy Minister Michael Glos: “[Unbundling] is not a cure-all…"