Est. 2min 11-07-2007 (updated: 28-05-2012 ) Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram Members of Parliament backed proposals from the Commission to split up large integrated energy firms such as France’s EDF and Germany’s E.ON, saying that this would be the best way to create an efficient internal market for gas and electricity. A majority of MEPs voted in favour of fully unbundling the ownership of companies that produce and transmit electricity and gas, saying that this would be the most efficient measure to tackle chronic under-investment in the network infrastructure and guarantee access to the market by new competitors. The report, which has no binding character but seeks to influence Commission proposals on energy liberalisation due in September, lashes out at attempts by certain governments, such as France and Germany, to create “national energy champions”, claiming that this amounts to nothing more than protectionism. It also called for an end to state-owned companies, such as France’s EDF or Italy’s Enel, saying that these are contrary to free competition as they subject the functioning of the market to political considerations. The independence of national watchdogs should be also reinforced in order to “avoid excessive intervention of governments, as was the case in Spain during the takeover bids of main electricity operator Endesa”, said the report. French MEPs, both from the right and the left, unsurprisingly rejected the proposal, in a sign that the Commission will face a tough battle against national ambitions when it presents its liberalisation package later this year. Read more with Euractiv Consumer groups alarmed by Google online ad mergerThe acquisition of the world's market leader in graphic online ads, DoubleClick, by Google, which dominates the market for text-based internet advertising, has led consumer organisations to ask the European Commission to address privacy concerns when examining the case. Subscribe now to our newsletter EU Elections Decoded Email Address * Politics Newsletters Positions MEP Alejo Vidal-Quadras, who drafted the report, said: "Even if this measure [unbundling] is not considered as the magic tool that will resolve all of the problems, it will be the best one to promote investment in infrastructure in a non-discriminatory way, fair access to the grid for new entrants and transparency in the market." But French socialist MEPs lamented the fact that "the position defended by the supporters of a dogmatic liberalisation and those that defend the dismantling of big companies triumphed over concerns about maintaining public service missions and consumers". French EPP-ED MEPs agreed that the Commission must develop alternative solutions to simply dismantling Europe’s energy companies, saying that this would compromise energy supply security in the years to come. "In a context of strong competition, with the emergence of powerful non-European operators, it appears dangerous to dismantle European energy enterprises in the name of a dogmatic competition policy that is a far cry from the industrial logic of strengthening the EU in global arena." They added that unbundling would prevent traditional energy operators from carrying out the necessary investments to ensure security of gas and electricity supply, saying: "Handing this over to new entrants, which do not necessarily have sufficient financial means, or to non-European companies, which do not necessarily share our forecasts on future needs, is very dangerous and very preoccupying." But Green energy spokesman Claude Turmes welcomed Parliament's "clear mandate" to the Commission to "put to an end the scandalous domination of the energy market by the oligopolies E.on-Ruhrgas, RWE and EDF". "This is a good day for European consumers, both big and small, but also for the environmental profile of the EU internal market. Indeed, it is clearly indicated by the Parliament's call for all "'subsidies for non-renewable energy sources to be eliminated'. Importantly, it is a clear demand to the Commission to address, in its September package, the question of bias in favour of coal and nuclear power production." BackgroundThe European Commission has long made clear that it favours full 'ownership unbundling' – breaking companies into separate production and distribution operations – as the best way to ensure fair competition and ultimately lower prices for consumers in Europe's opening electricity and gas sector. Following pressure from France and Germany, which argue that further liberalisation will threaten supply security and lead to price instability (EURACTIV 11/12/06), EU leaders gave only partial backing to this approach at their Spring Summit of 8-9 March, and insisted that existing European Directives on liberalisation be implemented before any further moves are made (EURACTIV 07/06/07). Timeline Sept. 2007: Commission expected to table third legislative package to liberalise gas and electricity market. Further ReadingEU official documents Commission:Energy for a Changing World Commission:DG Energy website on gas Commission:DG Energy website on electricity Parliament EPP-ED:Strasbourg: European Parliament calls for more legislative measures to build up a common energy market. Alejo Vidal-Quadras MEP(10 July 2007) EPP-ED:Séparation patrimoniale des entreprises énergétiques: les Députés européens de l'UMP expriment leur opposition(10 July 2007) Greens-EFA:EU energy market: EP gives clear mandate to the Commission to break up German and French energy oligopolies(10 July 2007) [FR] [FR] [DE]
