Press Communication, 5 June 2008

(5 June, Brussels) The European Federation of Public Service Unions (EPSU) has called on the EU Council of Energy Ministers to pull back from the ‘grave error’ of forced ownership unbundling in the sector. EU energy ministers are set to discuss far-reaching proposals for energy companies on 6 June. EPSU has warned that Ministers run the risk of swinging a wrecking ball at the sector in a time of growing energy supply concerns.

EPSU Deputy General Secretary Jan Willem Goudriaan stated that; "Ministers had to address the energy price reality and not get stuck on market theory. The Council should reject the European Commission obsession with ownership unbundling and instead address the real problems: the increases in energy prices; security of supply; and climate change. Ownership unbundling does nothing to tackle these problems”. He adds: "This debate distracts from the real issues such as ensuring effective regulation and democratic control, security of supply and more investment in grids, power plants and renewable energy sources."

EPSU has warned that following the proposals for transmission network unbundling, the next step could be ownership unbundling of distribution networks and separation of generation and retail. It fragments the companies, makes realising the public service mission more complicated and ultimately impacts on security of supply. “In a time of growing concerns about the sector, the EU runs the risk of further exacerbating the situation”, added the EPSU representative.

Affiliated unions have organised lobby campaigns with Government and national parliament representatives.

For further information, please contact Jan Willem Goudriaan, EPSU, + 32 2 2501080 or +22 474 98 96 75 http://www.epsu.org/r/34

EPSU press ending

EPSU is the European Federation of Public Service Unions. It is the largest federation of the ETUC. 8 million public service workers from over 200 trade unions are members. They organise workers in the energy, water and waste sectors, health and social services and local and national administration.