Italy's Energy Regulator Alessandro Ortis said Thursday Eni SpA's (E) exit from Snam Rete Gas SpA (SRG.MI) would be the "best option" to boost competition in the country's gas market, still dominated by the former monopoly.
Eni, Italy's biggest oil and natural gas company by volume, controls more than 50% of Snam Rete Gas, the country's biggest gas grid operator by network size.
In his annual speech to parliament, Ortis said Thursday that Eni's control of Snam Rete Gas limits competition in the industry.
Italy's regulator said the corporate separation of energy supply and distribution businesses, known as ownership unbundling, has been chosen as the best solution in 13 European countries for electricity and six other countries for gas.
These measures are a "good foundation" to overcome obstacles in the opening up of the E.U. energy market, Ortis said.