Overview

Under the provisions of the TEP, the EU member states will have the opportunity to choose between three different approaches on more effective unbundling.

• Full ownership unbundling (OU) – The transmission system operator (TSO) owns the electricity/gas network and is not controlled, directly or indirectly, by a vertically integrated undertaking (VIU) that is also active in supply and generation.

• Independent System Operator (ISO) – VIUs retain ownership of their transmission networks but must hand over the operation, maintenance and development of the transmission system to a separate entity, the ISO.

• An Independent Transmission Operator (ITO) model (the so-called ”third way approach“) – The TSO remains within the VIU but additional regulatory conditions
are introduced in order to guarantee the independence of the ITO from the VIU.