UPDATE 2-EU lawmakers back compromise on opening gas markets

Wed Jul 9, 2008 1:41pm BST
 
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By Pete Harrison

STRASBOURG, July 9 (Reuters) - European Union lawmakers agreed on Wednesday to back a compromise on liberalising EU gas markets, seeking to address the concerns of countries like France and Germany that oppose full liberalisation.

"This directive will impact on major, powerful monopolies in Europe, in some cases state monopolies," MEP Romano La Russa, who led the legislation through the European Parliament, told reporters.

The deal will put downward pressure on gas prices, although this will be more than offset by the impact of oil at record highs, he added.

The European Parliament voted 579-80, with 52 abstentions, for a package of measures proposed by its industry committee.

The executive European Commission proposed last year splitting ownership of gas and electricity supply from pipelines and grids in a drive to help new entrants and force down prices.

Germany and France spearheaded opposition to any forced breakup of national energy champions and proposed a "third way" allowing vertically integrated utilities to keep ownership of transmission networks under strict supervision by a regulator.

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