EU proposals to heighten competition and risk in the energy sector

The EC’s continued push for greater liberalisation and competition in the energy sector could lead to increased earnings and credit risk for utilities, S&P warns.

The European Commission has expressed concern over the speed and inconsistency with which unbundling – the separation of transmission and distribution – is being carried out by large vertically-integrated utilities in Europe. Just last month Neelie Kroes, EU commissioner for competition policy, called for further unbundling of power

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