Ownership unbundling Ownership unbundling is advocated by the European Commission and the European Parliament. This option is intended to split generation (production of electricity) from transmission (of electricity from electrical generating station via a system to a distribution system operator or to the consumer). The purpose of this system is to ensure that the European energy market can't be
vertically integrated. The proposal is controversial, with questions as to who can buy the transmission networks, whether such a system will regulate the market-place and who will pay possible compensation to the energy firms. Moreover, some economists also argue that the benefits will not exceed the costs. Some further problems have to do with possible inequalities that may arise during the implementation of the framework between undertakings from Member States with a different organisation of the market structure. A suggested solution refers to the better development of the level playing field clause.
Independent system operator (ISO) The Art. 13 – 16 of directive 2009/72/EC give the member states also the opportunity to let the transmission networks remain under the ownership of energy groups, but transferring operation and control of their day-to-day business to an independent system operator. Investments on the network will be accomplished, not only by the owner's funding but also by the ISO's management. It is also a form of ownership unbundling, but with a trustee. In theory, this would allow transmission and generation to remain under the same owner, but would remove conflicts of interest.
Independent transmission operator (ITO) Austria,
Bulgaria,
France,
Germany,
Greece,
Luxembourg,
Latvia and the
Slovak Republic presented at the end of January 2008 a proposal for a third option. This model, the ITO, envisages energy companies retaining ownership of their transmission networks, but the transmission subsidiaries would be legally independent joint stock companies operating under their own
brand name, under a strictly autonomous management and under stringent regulatory control. However, investment decisions would be made jointly by the parent company and the regulatory authority. In order to exclude discrimination against competitors, one prerequisite is the existence of a compliance officer, who is assigned to monitor a specific programme of relevant measures against market abuse. It is also named a
legal unbundling.
ITO+ There are also provisions for an alternative fourth choice for Member States. This option that may be referred as ITO+ or unbundling a la carte as States may keep their own system, provided it already existed in 2009, concerned a vertically integrated transmission system and it included provisions that ensure a higher independence status for the operation of the system than that of ITO. == National Regulatory Authorities ==