European Union ministers are tackle controversial proposals to shake up power companies and set targets for renewable fuels today.
The European Commission in January proposed measures to cut greenhouse gas emissions, boost the production of energy from environmentally friendly sources and separate distribution networks from the generation activities of big gas and electricity companies.
But EU states are divided over whether to make targets for renewable energy sources binding. They are also split on how far to go in separating, or "unbundling", utilities' generation and distribution businesses.
EU Energy Commissioner Andris Piebalgs reiterated late yesterday the Commission's preference for full "ownership unbundling," which would require companies to separate the two activities by selling off one business.
But in a nod to EU governments that oppose such a shake-up, the EU executive has also proposed a second option in which utilities hand over management of their distribution grid operations while retaining ownership.
Mr Piebalgs said the Commission was open to a third proposal by France for "regulated unbundling", similar to the French system.
Britain describes that option as maintaining the status quo.