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Germany pledged to find a "middle way" yesterday in EU efforts to open gas and electricity markets to more competition as EU governments differed over how far to go in a planned energy sector shake-up.

 

Energy ministers met in Brussels for the first time since the European Commission proposed measures last month to cut greenhouse gas emissions, boost energy production from environmentally friendly sources and separate distribution networks from the generation activities of big utility groups.

 

EU states are split on how far to go in separating, or "unbundling", power generation and distribution businesses.

 

"I support the commission emphatically in the goal of having more competition and, through that, more favorable prices in Europe," said German Economy Minister Michael Glos.

 

"On the way to meeting that goal, there are the most different of views among the 27 member states. We will come to an agreement on a middle way," he said.

 

EU Energy Commissioner Andris Piebalgs reiterated on Wednesday the commission's preference for full "ownership unbundling."

 

This option would require giants such as Germany's E.ON and RWE to sever their generation and distribution activities by selling off one business.

 

In a nod to governments that oppose such a shake-up, the EU executive has offered a second option in which utilities hand over management of grid operations while retaining ownership.

 

Piebalgs said the commission was open to a third idea from France for "regulatory unbundling" along French lines.

 

(China Daily February 16, 2007)