The grip of Europe’s energy monoliths on much of its gas and electricity networks remains strong. European Union member states, led by France and Germany which oppose sweeping energy liberalisation, have persuaded the European Commission to rethink a forced split of companies’ production and distribution assets.

That is not to say the deal between German power company Eon and EU competition authorities will not lead to more grid sales. But if Europe’s leaders are serious about increasing competition, then the compromise discussed by ministers is a weak alternative to the Commission’s original plan. Under the latest proposals, energy companies would not have to sell grids and pipelines. They would face tougher regulation and a requirement for more independent management.