Nobody knows if this is a good deal for the consumer: Germany debates unbundling
By Stefan Nicola, European Energy Review, January - February 2008
The European Commission has proposed an extensive overhaul of Europe’s energy market with the aim to improve competition, spark infrastructure investments and create a cross-border European power market. However, ownership unbundling (OU), the Commission’s key plank in the new competition initiative, has been met with bitter resistance, particularly in Germany, where four powerful energy giants rule over an oligopoly that many say is causing excessively high energy high prices. So will OU significantly drive down prices? Most experts European Energy Review talked to have serious doubts. They add that the Commission is fighting a monster it has created itself.