By the end of this month the fate of the electricity distribution industry should be known. There are currently two completely concepts which are being considered.
The first, prepared by the economy ministry, foresees the creation of two large groups based on the east and west of the country which would contain those distribution companies which are still in state hands. The next stage would see the electricity trading companies broken away and privatised. The second proposition belongs to the treasury and sees five groups based around the dominating production companies. In this case the trading companies would also be hived off although they would remain under the control of the distribution companies and would be privatised with them.
Analysts have varying opinions of the two projects. Most however seem to consider the treasury proposal the best. The greatest problem with the proposal of the economy ministry is unifying the management teams of so many operators.
However whereas consolidation is clearly going to happen, the state is not the best manager of this process. It would clearly be better if investors oversaw consolidation and they themselves would be the masters of their own profits or losses.