The fashion for breaking up utilities is the “wrong call”, according to Enel, Europe’s largest power company by market capitalisation, which has reiterated its commitment to an integrated business model. Francesco Starace, Enel chief executive, said it was “too risky” to place bets on particular parts of the energy value chain while the disruptive shift from fossil fuels to renewable power was still unfolding.

His comments followed this month’s €43bn asset swap between German utilities Eon and RWE under which the former will focus on operating energy networks and supplying retail customers, while the latter will specialise in electricity generation, according to Financial Times.

Starace said Italy-based Enel would not be tempted to follow the German example. “We believe time will tell, honestly, which part of the value chain prevails over which, or whether they both are necessary,” he told the Financial Times.

“We’d rather not bet and [instead] continue to optimise across the value chain because . . . the market has not yet made up its mind.”

Further deals were likely over the next 18 months, Mr Starace said, as utilities reshape their portfolios while antitrust scrutiny might force the disposal of some assets. This could create opportunities for Enel to make bolt-on acquisitions of up to €5bn in value but Mr Starace insisted he was not chasing larger-scale deals. All of Europe’s big utilities are facing difficult strategic choices as traditional business models are challenged by the falling cost of renewable wind and solar power, accompanied by political pressure to shift away from fossil fuels.