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The article reports that the recent gas auction in Hungary represents a step forward for competitive development by easing one of the currently prevailing barriers to new market entrants. The E.ON AG of Germany completed its first gas auction in Hungary. E.ON acquired stakes in the unbundled units of MOL Hungarian Oil and Gas Co. under the terms of a deal signed in November 2004.

The article reports that the British supermarket chain J Sainsbury is nearing the end of its four-year fixed price contract with Rheinnisch-Westfälische Elektrizitätswerke German energy company. Sainsbury has undoubtedly benefited over the past four years from the low price of its power. The energy services bundling in its contract is unusual.

The article reports that the Italian government has decided to go much further than the legal network unbundling required by European Union energy directives and aims to scrutinize the ongoing regulatory and antitrust proceedings against Eni, energy giant. The government has been concentrating on the unique positioning in terms of access to infrastructure of Eni and its natural gas network. Meanwhile, Eni reassures the government by promising a deconsolidation in 2008.

The article reports that the new government of Prime Minister Romano Prodi of Italy has taken an aggressive stance on network unbundling, and this will have far-reaching implications for Eni SpA and its natural gas network. The Italian government's decision to go much further than the legal network unbundling required by European Union energy directives.