Est. 2min 19-06-2007 (updated: 16-07-2007 ) Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram The Parliament’s Industry, Energy and Research (ITRE) committee has voted in favour of a report that supports the full liberalisation of electricity markets, rejecting an earlier proposal that called for continued ownership of distribution networks. The report also makes an important distinction between the liberalisation of gas and electricity markets. No ‘flexibe’ unbundling Transmission ownership unbundling, according to the report, is the “most effective tool to promote investments in infrastructures in a non-discriminatory way, fair access to the grid for new entrants and transparency in the market”. The committee voted to reject language contained in an earlier draft of the report, which argued in favour of a “flexible” position on unbundling through the use of an independent system operator to act as “a more feasible option for those member states lagging heavily behind”. Despite its support for unbundling, the report also “underlines however that this model might not address all the issues at stake such as interconnections or congestion points”. Gas: different measures needed Because gas-sector profits are generally made from distribution rather than generation capacity, the report argues that the unbundling of the gas sector is “not straight forward”, particularly for those companies that import their gas from third countries such as Russia. The report urges that “specific solutions will have to be developed for this sector to achieve the completion of the gas internal market, taking into account the differences between the upstream and downstream markets”. Read more with Euractiv EU states reject breaking up energy firms A majority of member states have voiced opposition to Brussels plans to strip off energy utilities from their distribution networks – 'ownership unbundling' – in what appears to be a victory for Germany and France against further liberalisation. Subscribe now to our newsletter EU Elections Decoded Email Address * Politics Newsletters PositionsCommenting on the vote, MEP A. Vidal-Quadras said: "The near unanimity of the final vote [32 in favour, none against and 3 abstentions] shows the clear will of the Parliament to achieve a positive step towards an improved articulation of the european policy on the internal energy markets based on liberalisation, competitiveness and transparency. This, of course, has been done with the highest consideration of the existing differences in national circumstances between member states while keeping in mind above all the common goal of completing and properly implementing the internal energy market." MEP Claude Turmes, vice-President and energy spokesperson of the Greens/Efa group in the European Parliament, said: "The energy committee sent yesterday a crystal clear signal to the Commission and member states that transmission unbundling is the most effective instrument, should we want a real EU energy market." Background The Commission has been complaining since 2004 about the lack of progress in creating an internal market for gas and electricity, as agreed in Directives adopted in 2003: "Vested interests impede real competition to be developed and new suppliers to come into the market. Lack of coordination and insufficient powers to regulators impede the development of a stable and transparent regulatory framework." The UK, Ireland and the Netherlands support further liberalisation, yet Germany and France in particular are opposed to additional measures such as "unbundling", meaning the full separation of network ownership from service delivery, which they argue will threaten supply security and lead to price instability (EURACTIV 11/12/06). While Competition Commissioner Nellie Kroes promised tougher action on liberalisation in January 2007, the Commission has also put forward an alternative proposal, which would allow existing energy suppliers to retain legal ownership of distribution networks, whereby the management of the networks is overseen by "independent system operators" (EURACTIV 11/01/07). Germany and France won further support for their position in June, when a majority of energy ministers voiced their opposition to complete unbundling (EURACTIV 07/06/07). The Parliament's report, drafted by EPP-ED MEP Rapporteur A. Vidal-Quadras, is intended to provide the Commission with further input for the formulation of a liberalisation proposal later this year. Timeline July 2007: Plenary vote on the report. September 2007: Commission expected to submit further proposals on the liberalisation of gas and electricity markets. Further ReadingEU official documents Parliament ITRE committee:Draft report: Prospects for the internal gas and electricity market Parliament Legislative Observatory:Report: Prospects for the internal gas and electricity market Commission:DG Energy website on gas Commission:DG Energy website on electricity Commission:12 Dec 2006 press release on warnings to member states SCADPlus:Information on internal market in gas directive SCADPlus:Information on internal market in electricity directive
