German utility RWE has reached an agreement with the European Commission to sell its gas transmission network in order to end the antitrust proceeding brought against it in 2007.
The agreement follows in the footsteps of RWE’s rival E.On, which has agreed to sell its electricity transmission assets in Germany, and comes as the European Commission pushes for the unbundling of energy groups in Europe.
RWE says that the decision to sell its 4100 km-long gas transmission network in Germany is a “consensual settlement” to the legal proceedings and will enable it to avoid protracted litigation. The European Commission brought the proceedings against RWE, alleging the presence of unjustified obstacles to the access of the country’s gas transportation system.
A company statement reads: “RWE is still convinced that it has complied with the legal requirements in the gas business. The intended agreement is not an acknowledgement of guilt.”
Energy ministers from across Europe are due to discuss unbundling of the region’s energy companies this month. The Commission believes that the move would promote competition in Europe’s electricity and gas markets, but has been strongly opposed by eight EU states, including France and Germany.
If the final plans for the sale are agreed following market testing by the European Commission, RWE will sell the assets within two years. The company says that the deal has no relation to the Commission’s current proposals for unbundling.
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