The European Commission has welcomed an announcement from Vattenfall that it is to sell its high voltage electricity grid in Germany.
The Swedish utility says that the move has been prompted by the debate in Europe surrounding the unbundling of vertically integrated utilities. It is to start contacting potential buyers for the grid, which is owned and operated by Vattenfall Europe Transmission GmbH.
“I am convinced that selling the transmission network will benefit both consumers and electricity companies with more competition and freedom of choice,” said European Energy Commissioner Andris Piebalgs. “Vattenfall’s announcement is perfectly in line with the letter and the spirit of the Commission’s 3rd Energy Market Package, that we hope will be adopted during the French Presidency.”
Vattenfall is aiming to complete the sale by the end of the first half of 2009. The Swedish energy group says it is looking for an investor that could “ensure substantial investments in network extension, and promote European integration of the electricity market by continuing to guarantee non-discriminatory grid access”.
“We have closely reviewed all options in the past months, and have reached the conclusion that a sale of our high voltage grid to a bona fide and financially strong investor might be a sensible solution,” said Tuomo Hatakka, Chairman of the Vattenfall Europe Management Board.
The European Commission’s Third Energy Package proposed the idea of completely separating electricity transmission from generation and supply as a means of bringing more competition to the market. Its plans were opposed by a number of European member states, including Germany.
The Commission’s proposals have prompted a debate in Germany over the creation of a single grid control area through merging the operation of the country’s four existing transmission system operators (TSOs). E.On and RWE appear to broadly support the idea, as does the country’s Federal Network Agency.
Vattenfall says the creation of a ‘Netz AG’ grid company would involve numerous challenges.
Vattenfall’s plan to sell its network in Germany follows that of E.On, which said in February 2008 that it had reached a deal with the European Commission to sell network assets in exchange for a settlement regarding antitrust investigations.
The German electricity transmission network is divided into four control areas with the four transmission system operators (TSOs) being E.ON Netz GmbH, RWE Transportnetz Strom GmbH, Vattenfall Europe Transmission GmbH and EnBW Transportnetze AG.
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