20 September 2007
Customers may get a better deal on their electricity and gas bills in the future if changes to energy markets in Europe get the green-light.
The European Commission has proposed to break up Europe's key energy players in order to open up gas and electricity markets to greater competition.
If the proposals get the go-ahead from the European Parliament, energy giants E.ON and Electricite de France may be forced to split or sell off transmission networks in order to stimulate competition.
Commenting on the plans, Sam Laidlaw, Chief Executive of Centrica, said: "The proposals are welcome and are an important step in providing more competitive energy markets for the benefit of Europe's energy customers."
Indeed, Ofgem's Chairman Sir John Mogg also welcomed the proposals: "From a British perspective today's proposal is a significant step forward on the road towards making a competitive energy market a reality for all European consumers.
"Unbundling transmission networks from continental energy suppliers will help create effective competition which will put a downward pressure on energy prices."
However, Christian Kjaer, European Wind Energy Association (EWEA) Chief Executive, said that more needed to be done to improve competition: "Independent operation of transmission networks is certainly a step in the right direction, but competition in the European electricity markets will continue to be distorted until independent operation has been complemented by independent ownership of the grids.
"Fair grid access is an absolute minimum requirement if the EU is to meet its objective of 20% renewable energy by 2020," he concluded.