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EUROPEAN UNION

EON sells network to avoid EU wrath

German power company EON will sell one of its networks to appease an EU request that aims to stimulate competition in the European energy sector.

EON sells network to avoid EU wrath
Photo: dpa

EON said Thursday it is ready to sell its transmission network, bowing to pressure from Brussels and putting it at odds with Berlin on how to liberalise Europe’s energy sector.

The company has fallen foul of European regulators over its market dominance, said it was now ready to sell its transmission network — but only to a non-competitor — along with 4,800 Megawatts of generation capacity to rivals.

The European Commission, which confirmed receiving EON’s plans, intends to market test the proposals and if they are successful, it “would not pursue the current anti-trust cases,” a statement from the company said.

“The European Commission welcomes these proposed commitments in so far as they could remedy the concerns that it has regards EON,” EON said. “These proposals, if adopted, would structurally change the electricity sector in Germany and could spur competition in the sector to the benefit of domestic and industrial customers.”

Earlier, a German government spokesman told AFP that EON head Wulf Bernotat had informed Chancellor Angela Merkel of the company’s intentions.

The move, however, puts EON at odds with the government which along with France and six other EU members had been pressing for Brussels to explore other ways to liberalise the continent’s electricity and gas sectors. They support a less drastic proposal whereby companies could be split up into affiliates with separate managements but remain within the parent group, in marked contrast to the EU’s preference for the simple sell-off that EON has now agreed to.

According to business daily Handelsblatt, three other major German power companies — RWE, EnBW and Vattenfall — were also in intensive talks on the sale of their distribution networks.

Recent years have seen a flurry of mega-mergers and acquisitions in the European energy industry but Brussels is worried that the resulting small number of very large firms such as EON stifles competition. For Brussels, big integrated energy companies that control the distribution networks inevitably means less competition in the market, a point consumer groups have made increasingly as power costs have risen sharply.

Brussels hopes that by separating power generation from power transmission it will free up the market and stimulate Europe’s economy by making electricity and gas cheaper for consumers and businesses. It also wants governments to become more willing to invest in new power stations and infrastructure to ensure supply keeps up with demand.

Earlier this week the head of RWE, another German power giant, said Europe faced blackouts lasting days at a time later this year because of a lack of power stations.

For its part, France has warned that the shake-up could in practice reduce competition and French European Affairs Minister Jean-Pierre Jouyet has attacked the Commission’s proposals as being driven by the “ideological position” of certain officials such as Competition Commissioner Neelie Kroes. There are also concerns that non-EU firms such as Russia’s Gazprom could snap up European assets as a result while EU firms would not be able to make acquisitions in Russia. German power company EON will sell one of its networks to appease an EU request that aims to stimulate European energy competition.

BREXIT

OPINION: Pre-Brexit Brits in Europe should be given EU long-term residency

The EU has drawn up plans to make it easier for non-EU citizens to gain longterm EU residency so they can move more easily around the bloc, but Italy-based citizens' rights campaigner Clarissa Killwick says Brits who moved to the EU before Brexit are already losing out.

OPINION: Pre-Brexit Brits in Europe should be given EU long-term residency

With all the talk about the EU long-term residency permit and the proposed improvements there is no mention that UK citizens who are Withdrawal Agreement “beneficiaries” are currently being left out in the cold.

The European Commission has stated that we can hold multiple statuses including the EU long-term permit (Under a little-known EU law, third-country nationals can in theory acquire EU-wide long-term resident status if they have lived ‘legally’ in an EU country for at least five years) but in reality it is just not happening.

This effectively leaves Brits locked into their host countries while other third country nationals can enjoy some mobility rights. As yet, in Italy, it is literally a question of the computer saying no if someone tries to apply.

The lack of access to the EU long-term permit to pre-Brexit Brits is an EU-wide issue and has been flagged up to the European Commission but progress is very slow.

READ ALSO: EU government settle on rules for how non-EU citizens could move around Europe

My guess is that few UK nationals who already have permanent residency status under the Withdrawal Agreement are even aware of the extra mobility rights they could have with the EU long-term residency permit – or do not even realise they are two different things.

Perhaps there won’t be very large numbers clamouring for it but it is nothing short of discrimination not to make it accessible to British people who’ve built their lives in the EU.

They may have lost their status as EU citizens but nothing has changed concerning the contributions they make, both economically and socially.

An example of how Withdrawal Agreement Brits in Italy are losing out

My son, who has lived almost his whole life here, wanted to study in the Netherlands to improve his employment prospects.

Dutch universities grant home fees rather than international fees to holders of an EU long-term permit. The difference in fees for a Master’s, for example, is an eye-watering €18,000. He went through the application process, collecting the requisite documents, making the payments and waited many months for an appointment at the “questura”, (local immigration office).

On the day, it took some persuading before they agreed he should be able to apply but then the whole thing was stymied because the national computer system would not accept a UK national. I am in no doubt, incidentally, that had he been successful he would have had to hand in his WA  “carta di soggiorno”.

This was back in February 2022 and nothing has budged since then. In the meantime, it is a question of pay up or give up for any students in the same boat as my son. There is, in fact, a very high take up of the EU long-term permit in Italy so my son’s non-EU contemporaries do not face this barrier.

Long-term permit: The EU’s plan to make freedom of movement easier for non- EU nationals 

Completing his studies was stalled by a year until finally his Italian citizenship came through after waiting over 5 years.  I also meet working adults in Italy with the EU long-term permit who use it for work purposes, such as in Belgium and Germany, and for family reunification.  

Withdrawal agreement card should double up as EU long-term residency permit

A statement that Withdrawal Agreement beneficiaries should be able to hold multiple statuses is not that easy to find. You have to scroll quite far down the page on the European Commission’s website to find a link to an explanatory document. It has been languishing there since March 2022 but so far not proved very useful.

It has been pointed out to the Commission that the document needs to be multilingual not just in English and “branded” as an official communication from the Commission so it can be used as a stand-alone. But having an official document you can wave at the immigration authorities is going to get you nowhere if Member State governments haven’t acknowledged that WA beneficiaries can hold multiple statuses and issue clear guidance and make sure systems are modified accordingly.

I can appreciate this is no mean feat in countries where they do not usually allow multiple statuses or, even if they do, issue more than one residency card. Of course, other statuses we should be able to hold are not confined to EU long-term residency, they should include the EU Blue Card, dual nationality, family member of an EU citizen…

Personally, I do think people should be up in arms about this. The UK and EU negotiated an agreement which not only removed our freedom of movement as EU citizens, it also failed to automatically give us equal mobility rights to other third country nationals. We are now neither one thing nor the other.

It would seem the only favour the Withdrawal Agreement did us was we didn’t have to go out and come back in again! Brits who follow us, fortunate enough to get a visa, may well pip us at the post being able to apply for EU long-term residency as clearly defined non-EU citizens.

I have been bringing this issue to the attention of the embassy in Rome, FCDO and the European Commission for three years now. I hope we will see some movement soon.

Finally, there should be no dragging of heels assuming we will all take citizenship of our host countries. Actually, we shouldn’t have to, my son was fortunate, even though it took a long time. Others may not meet the requirements or wish to give up their UK citizenship in countries which do not permit dual nationality.  

Bureaucratic challenges may seem almost insurmountable but why not simply allow our Withdrawal Agreement permanent card to double up as the EU long-term residency permit.

Clarissa Killwick,

Since 2016, Clarissa has been a citizens’ rights campaigner and advocate with the pan-European group, Brexpats – Hear Our Voice.
She is co-founder and co-admin of the FB group in Italy, Beyond Brexit – UK citizens in Italy.

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