MPs scupper foreign power firm takeovers

Wednesday 26 November 2008

Foreign energy firms that have not split off their grids should not be allowed to take over Dutch electricity companies, MPs said on Wednesday, reports the Financieele Dagblad.

An overwhelming majority of Dutch MPs voted in favour of two amendments to a law which makes Dutch energy firms separate their commercial production and supply activities from their grid operations, the paper says.

One specifies that Dutch energy companies which have divested their grids will not be given permission to be taken over by foreign energy firms that have not separated these activities, according to the FD. This applies to most French and German energy concerns.

The grids are to remain in public hands.

The two biggest Dutch companies Nuon and Essent, are both currently looking for foreign partners and there is speculation that Germany’s RWE is interested in both firms. But that would be impossible if ministers accept the amendment.

With this move MPs want to prevent unfair competition on the Dutch market, says the paper.

The economic affairs minister does not have to implement parliament's amendments. A department spokesman said the minister is considering the situation.

© DutchNews.nl

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