Bulgaria is among the eight countries that oppose the European Commission's plans to split up national power utilities, separating distribution from production, and backed an alternative plan in a letter to energy commissioner Andris Piebalgs, as reported by Reuters.

France and Germany lead the resistance to the European executive's project, securing the support of Austria, Bulgaria, Greece, Luxembourg, Latvia and Slovakia.

"Neither the impact assessment, nor the policy debate of the last months have been able to dissipate these serious concerns already expressed..., and therefore we remain firmly opposed to this measure," according to the letter, as quoted by Reuters.

The Commission favours breaking up integrated production and distribution businesses altogether, which it calls unbundling, and is likely to be backed by the UK, Italy and Spain, who already have such legislation in place.

The European executive believes that by doing so it would spur competition in the sector, which in turn would reduce electricity prices across the 27-member bloc.

In their letter on January 30, the eight dissenting countries have outlined their own proposal on the issue.

The Commission thinks insufficient competition inside member states and the absence of a European power market is hindering investment in new plants and networks and maintaining artificially high electricity prices in the region.