Jun 6, 2008, 15:09 GMT
Luxembourg - European Union government ministers were moving closer to a make-or-break compromise on how to increase competition in their energy markets by breaking up dominant sellers, officials said Friday.
'We are closer now than we were two hours ago,' one source close to the negotiations said.
Talks among ministers meeting in Luxembourg began in the morning and were expected to end by early evening.
The biggest bone of contention involved European Commission plans to force large companies that sell gas and electricity, such as France's EDF and Germany's E.ON, to relinquish control of the grids which distribute the energy - a process known as 'unbundling'.
France and Germany, who argue that any move to break up their national energy giants would be illegal, put forward an alternative proposal on the table in Luxembourg.
This involves leaving the ownership of the grid in the hands of the parent company, but setting up a separate subsidiary to manage the network.
'While the majority of delegations and the commission see full ownership unbundling as the first best option, an option allowing for an Independent Transmission Operator (ITO) has been developed,' a draft document discussed by ministers read.
However, ministers were still divided over key issues, such as how to ensure that the parent company does not influence the transmission one.
© DPA 2008
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