So on the same day that the EU says that Spanish regulators have misbehaved by setting un-competitive hurdles for E.ON to jump before being allowed to take over Endessa, Union Fenosa and Ibedrola the number two and three in Spain annouce merger plans. The reason for the spaniards putting in competition hurdles is so that they can keep their Utilities Spanish and this merger fits that plan and so is likely to be allowed to go ahead.

It does however, change the dynamics of the Spanish market particularly for EOn and it would not be unreasonable to see them re-look at the original terms of the deal. It is clear that the EU can rattle cages but foreign countries tend to take no notice. It still grates that every utility in the EU is nationally owned apart from England.