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Current EU legislation establishes that distribution and transmission systems shall be operated through legally separate entities where vertically integrated undertakings exist. At the same time, European Union’s Energy Policy promotes generation of electricity from renewable sources which mostly takes the form of Distributed Generation (DG from now on). In the context of a vertically integrated company the development of this business may be easier as its impact on the distribution network segment (connection costs) would be internalized. However, when infrastructure and generation business are separated these costs become externalities that tend to be borne by Distribution System Operators (DSO from now on).