The European Union (EU) leaders on Friday adopted a less ambitious plan to separate energy giants according to different business activities.

According to the Presidency Conclusions released after the EU leaders wrapped up their two-day summit here, the 27 member states agreed on the need for "effective separation of supply and production activities from network operations," the so-called "effective unbundling."

It makes no reference to breaking up big electricity and natural gas companies of some member states, which fell below the "ownership unbundling" as proposed by the European Commission (EC).

To ensure the free flow of gas and electricity within the EU and to guarantee fair prices for consumers, the EC, the executive arm of the EU, proposed in January that energy giants be forced to sell or separate their generation businesses and distribution networks in a process known as "ownership unbundling."

Splitting of big energy companies became one of the most controversial issues for the EU summit as the EC's ambitious proposal met strong opposition from France and Germany, which is currently holding the EU presidency.

Source: Xinhua