Smaller energy companies will have greater access to the energy market as tough measures by the European Commission promise to reduce domination by larger companies.
As part of a third package of legislative proposals, the European Commission is to do away with a company's ability to own both transmission and energy production or supply – a move that could hit companies such as Russian state-owned energy monopoly Gazprom.
Commission proposals outline that network ownership and operation should be "unbundled" – referring to the separation between network operation of electricity and gas from supply and generation activities.
The European Commission – increasingly dealing with a wider global marketplace - says it is taking these steps to put consumer choice first and create a more competitive energy market.
"An open and fair internal energy market is essential to ensure that the EU can rise to the challenges of climate change, increased import dependence and global competitiveness. This is about getting a better deal for consumers and business and making sure that third country companies respect our rules," says European Commission President Barroso.
The commission is also set to launch a new energy charter in 2008 which will include measures to address fuel poverty, information for customers to choose a supplier, actions to lower red tape when changing energy suppliers and protection from unfair selling practises.
By Ozge Ibrahim
