Watching Government
Italian gas decontrol

02/21/2000
The Italian government has proposed to end ENI SPA's near-monopoly on natural gas distribution but let it keep most of its assets and contracts.Parliament must approve the decree, which would open the Italian gas market to competition ahead of an August deadline set by the European Union.The decree would not allow any company to have more than 50% of the retail gas market or more than 70% of pipeline shipments. ENI has 88% of sales and 85% of shipments.ENI must yield partial control of Snam SPA, its gas distribution subsidiary. Snam contributes about 60% of ENI's profits.The decree does not require ENI to sell Snam or its supply contracts or alter take-or-pay contracts for pipelin...
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