Six states protest EU energy reform
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Oil pipeline - energy has become a hot topic in the EU (Photo: wikipedia)
By Honor Mahony
A group of member states have written a letter of complaint to the European Commission about its plans to overhaul the energy sector.
The letter, written by France's economy minister Jean-Louis Borloo and signed by five other countries, protests against the idea that production and distribution channels need to be separated in energy companies - a proposal Brussels believes is key to introducing competition to the area.
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"The assumption that only complete ownership unbundling can lead to further development of the internal market in electricity and gas must be rebutted," says the letter, reported on by Financial Times Deutschland.
Signed by Austria, France Germany, Greece, Luxembourg and Slovakia, the protest letter suggests that the separation step - known as unbundling - could have negative consequences.
It also says that there is no proof that taking this line against energy companies would lead to lower prices for consumers or spur investment in the sector.
The letter comes at a critical time in the commission's thinking on the issue, with Brussels due in autumn to publish the keenly awaited legislative proposals.
EU competition commissioner Neelie Kroes has indicated she wants to break up energy giants such as France's EDF or Germany's E.ON believing that the fact they control both supply and distribution makes it harder for new entrants to enter into the market.
For their part, the six protest countries argue that the commission's line cannot necessarily guarantee competition, energy sustainability and security.
But Brussels has support for its harder line among other member states, including the UK and Sweden.
