France, Germany to propose joint EU energy plan
PARIS, Dec 6 (Reuters) - France and Germany will present a joint alternative by the end of January to European Commission proposals that seek to break up big utility firms and spur competition in gas and electricity markets.
French President Nicolas Sarkozy announced the plan at a joint news conference with German Chancellor Angela Merkel on Thursday but did not give details on the proposal.
The EU executive's plan would force companies such as Germany's E.ON EONG.DE and France's EDF (EDF.PA) to split off their transmission networks from production activities.
A second option would require them to hand over control of their networks to an independent system operator.
"We decided that France and Germany would make a joint proposal regarding the directive on the internal market in electricity and gas by the end of January," Sarkozy said.
On Monday, France and Germany and other countries called for a "third way" to reform energy markets in the 27-nation bloc. France has said it will offer an alternative model in early 2008 that would separate transmission grids from production while preserving companies' rights to own both businesses.
Germany had said it would make new proposals in the coming weeks that would guarantee new investors access to energy grids without forcing grid owners to sell their infrastructure.
Britain, which has already opened up its market, supports the Commission. But France and Germany are reluctant to break up strong, dominant energy companies on their home turf.
Energy Commissioner Andris Piebalgs, while staunchly defending the Commission's proposals, has said he is open to further suggestions from EU governments.
But any new proposal must ensure the independence of transmission system operators when taking decisions about investments in infrastructure.
The Commission says its proposals will spur competition, cut energy prices, boost investment and encourage new companies into the energy grid. (Reporting by Francois Murphy; Editing by Jon Boyle and Michael Winfrey)
