Brussels, 25/01/2008 (Agence Europe) - On Thursday 24 January, following the unveiling at the EP's Energy Committee (ITRE) of the work of the rapporteurs on the 3rd package of legislation on the internal energy market, French MEP Dominique Vlasto (EPP-ED) slammed the overarching contradiction underlying the issue of effective unbundling of energy operators' ownership. While stating that ownership unbundling is the best way of organising cooperation on the internal energy market, the rapporteurs, particularly Eluned Morgan (PES, UK, who is rapporteur on the draft electricity directive to amend Directive 2003/54/EC on the common rules for the internal energy market), recognise that it will not have any impact on consumer prices and agree with the idea that energy prices will rise irrespective of the type of ownership structure decided upon, explained Vlasto. She added that she was therefore astonished that this radical measure was being promoted when, according to the promoters, there were no consumer benefits expected to arise from it. It is the watchdog who guarantees consumer interests, added Vlasto in a press release. The French MEP commented on the other two decisive areas of the package (improving the functioning of the market and promoting investment) that ownership unbundling was a 'pointless legislative decoy'. Improving the functioning of the market and its integration is not contingent on the ownership situation but rather on the teeth of the regulators, who have to oversee the opening of the market and the network access conditions. She added that the legal and accounting separation of activities, with effective control by national regulators, is therefore a solution which is just as feasible as ownership unbundling if the regulators have their powers reinforced and harmonised. Vlasto explained that the choice and scale of investment do not depend on the company managing the transport network but rather on objective criteria like the level of security and performance and profitability and writing-off thresholds. These criteria apply both to vertically integrated companies and any other companies that own networks. Beyond these criteria, there is a planning need to which the European Commission is responding by suggesting the drawing up of an EU ten-year investment plan. Vlasto said she felt such a plan was necessary. She said it should be approved by the National Regulators' Cooperation Agency and completed by national investment plans approved by the national regulatory authorities. To sum up, Vlasto said that judging by the initial discussions, the debate was far removed from the realities of the market, companies and the challenges facing them. Only the discussions on the national and European regulators' powers had got to the real heart of the matter, she said, adding that the dossier had to be tackled without prior assumptions. (E.H.)