Speak Up Energy

Joint stock company

At the heart of the Franco-German plans, outlined in a set of amendments
to the Commission’s proposals on energy market liberalisation, is the issue of ownership and control over transmission system operators (TSOs), which control access to power grids and manage the flow of electricity at national level.Rather than stripping ownership or control of TSOs from firms as proposed by the Commission, France and Germany propose that companies are transformed into joint stock companies, whereby a separate management and board is established for the subsidiary (the TSO), with clear limits to the influence of the parent company (the energy producer). Under the scheme, the parent company would not have any control over the day-to-day operations of the TSO, which would be run under a separate management with “effective decision-making rights, independent from the integrated electricity undertaking [parent company], with respect to assets necessary to operate, maintain or develop the network”, the draft says.This is similar to an option outlined by the Commission, whereby legal ownership over TSOs could be maintained under the condition that an Independent System Operator (ISO) is established to prevent conflicts of interest and to ensure infrastructure investments and fair grid access to competitors.

But the Franco-German plans do away with the ISO option, in an apparent effort to eliminate third party oversight and control.

From Eur Activ

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