Tag: energy liberalisation

A compromise deal on how to force more competition onto EU gas and electricity markets is taking shape in Brussels after the European Commission presented a modified text aimed at soothing French and German opposition to "ownership unbundling".

Amid concerns over rising energy prices, the Commission is preparing a new online information pool on the rights of energy consumers, while MEPs in the Parliament's Industry Committee have voted for stronger consumer protection measures in the EU's energy market liberalisation drive. 

A compromise deal is taking shape in Brussels that could see France and Germany win a six-year delay in opening their energy markets to full competition, according to Alejo Vidal-Quadras, one of the leading MEPs on the dossier.

Industries and private households are in theory able to freely choose their energy supplier following the entry into force of EU directives in 2004 and 2007, but many obstacles remain, with a single European energy market still far from reality. To make up for the shortcomings, the European Commission has made further legislative proposals, including controversial plans to separate the production and distribution arms of large integrated energy firms such as France's EDF and Germany's E.ON.

A reciprocity clause in trade and investment is necessary to prevent a massive sell-out of strategic EU energy assets to foreign companies such as Russia's Gazprom, a senior Commission official insisted at a debate on energy liberalisation this week.

Dominique Maillard, head of the French electricity network operator RTE, explains why he believes splitting up energy firms is unnecessary in France. He spoke to EurActiv.fr just days after German energy giant E.ON stunned Europe by offering to sell off its electricity transmission network.

Energy ministers from the 27 EU member states held a "lively discussion" on the Commission's controversial proposal to split up energy firms, agreeing only to send the matter back to diplomats in view of a deal in June.

Despite its initially cool reaction, the Commission has signalled it could accept an alternative proposal on energy liberalisation as long as further safeguards are introduced. The alternative, to be officially unveiled by France and Germany this week, would allow large power companies to maintain ownership and limited control over transmission assets.

Consensus is growing among a wide range of stakeholders to reinforce the powers of a proposed new European agency to regulate energy markets, it emerged from a Parliament hearing. But opinions still differ sharply in Brussels about the need to break up the EU's largest energy firms as a means of boosting competition.

The Commission's proposals to further liberalise the EU's energy markets include plans to create a new European agency designed to oversee cross-border cooperation for gas and electricity transmission between member states. But regulators question whether the agency will have enough powers to effectively fulfill its mandate.

The German cartel office has compiled considerable evidence of price fixing and anti-competitive behaviour by Germany's four main electricity and gas suppliers, according to information obtained by the Spiegel.

EU competition authorities have told energy firms they can in future avoid certain anti-trust cases by limiting long-term gas and electricity supply contracts, following a 'blueprint' deal between the Commission and Belgium's Distrigas.

A growing "crisis of confidence" threatens the Russian-European natural gas relationship but need not translate into a future supply "crisis", according to a new study by Cambridge Energy Research Associates (CERA).

A new battle has begun over the next round of energy liberalisation. Commission proposals to complete the EU's internal market for gas and electricity are leaving France and Germany in a quandary, with EDF and E.ON facing either the dismantling of their transmission assets or tight regulatory restrictions.

Administrative and technical barriers as well as excessive costs and delays present larger barriers to local electricity producers than the ownership structure of EU energy markets, according to experts who debated the issue in Brussels yesterday (13 September 2007).

A proposal to further liberalise the EU's energy market, due on 19 September, is to present member states with alternative options to full 'ownership unbundling' in an effort to ward off a veto threat from nine countries led by Germany and France, EU officials have told EurActiv.

The second half of 2007 promises renewed tensions as legislators prepare to hammer out the EU's future energy policy. Controversial Commission proposals on energy market liberalisation are due in September, with renewables and CO2 burden-sharing proposals scheduled for the end of the year.

The Commission announced the opening of antitrust procedures on 26 July against the leading French energy company, EDF, and the Belgian branch of Suez, Electrabel - saying that it suspected both energy providers of foreclosure of the Belgian and French electricity markets. 

A Commission initiative to launch an Energy Consumers' Charter has run into criticism from consumer groups who argue that its non-binding character will not be enough to stop borderline commercial practices.

Introducing liberalisation as a way to decrease prices was a communication mistake, says Antoine Pellion, in a paper for the Robert Schuman Foundation. It is crucial to take a long-term assessment of the benefits of opening European electricity markets to competition, he claims.

On 26 June, panellists from a range of sectors debated the role of regulation, fiscal incentives, consumers and other issues related to the transformation of the EU's energy market in light of climate-change and energy-security concerns.

Speaking to EurActiv.fr, MEP Anne Laperrouze (ALDE/UDF) highlights the problems posed by the liberalisation of energy markets, and insists that the Union must maintain European 'energy champions'.

Quasi-monopolistic structures across most EU countries are leaving small businesses with no real choice of supplier as energy markets prepare for full liberalisation on 1 July, warns UEAPME, the European small-business organisation.

The Commission is preparing legislation on 'ownership unbundling' to separate energy generation and supply activities from network operation despite opposition from France and Germany, EU officials indicated.