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17 July 2007 - Eurelectric, the European electricity industry association, has said that there is no need for the European Commission (EC) to introduce new laws affecting distribution system operators for the EC to address its concerns over competition.
In its report Views on Unbundling in Distribution System Operator, Eurelectric said unbundling DSOs should not be an end in itself, but just a means to ensure fair competition. Given that, "existing legal provisions are robust and sufficient to satisfy the concerns expressed by the European Commission in its January 2007
Energy Policy Package," Eurelectric said.
Distribution system operators manage local lower voltage wires from the main transmission grids to local homes and businesses. Unbundling is where the operators of such wire networks are split from companies that sell power over the wires.
Were the EC to require full unbundling of distribution networks from energy retailers then even liberalized countries like the UK could see changes. In the UK the main national transmission system is operated by the independent company National Grid.
But local wires are owned by retailers like E.ON UK and EDF Energy. Eurelectric's report is based on input from 24 major distribution companies from 15 European countries.
In its recommendations, the new Eurelectric report stressed it would be premature at this stage to enact any legal measures going beyond the current four steps of unbundling. Unbundling can be legal--with ringfences-or achieve full-scale ownership unbundling.
Instead, said Eurelectric, the focus should be on full implementation of current provisions, with an assessment of their impact before thinking about any stronger measures.
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