France to submit proposal for European energy

8th February 2007, Comments 0 comments

LONDON, Feb 8, 2007 (AFP) - The proposed separation of European energy producers and distribution networks would harm the EU's strategic interests, French Industry Minister Francois Loos said in an interview published Thursday in the Financial Times.

LONDON, Feb 8, 2007 (AFP) - The proposed separation of European energy producers and distribution networks would harm the EU's strategic interests, French Industry Minister Francois Loos said in an interview published Thursday in the Financial Times.

The paper said France, in a document circulated to EU officials ahead of a meeting of the energy council in Brussels February 15, had warned that such measures could "weaken European energy groups where size is a determining factor in discussions with fossil energy producing countries on which Europe is still very dependent."

Loos told the FT that he was planning to propose a system of "regulated unbundling," where an independent regulator would set prices for access to energy grids and would review investment decisions, similar to the system in place in France.

"If there was an independent owner or operator of the grid, I am not sure that would guarantee investment," Loos told the newspaper.

"We simply want to add our solution to the discussion. We have a model and believe it answers the objectives. It would be a shame to break it merely for reasons of principle."

Copyright AFP

Subject: French news

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