Energy: Commission Sounds Out Opinion Before Further Liberalisation

While acknowledging that the EU's drive to open up its electricity and gas markets "has borne fruit", EU Commissioner for Energy Loyola de Palacio feels the existing margin for improvement may only be reached "in some cases, if liberalisation goes further". The main advantage that deregulation has brought so far is the fall in electricity prices. Nevertheless, boosting competition between gas companies would help break away from the traditional index-linking of gas prices to oil prices.Discrimination.Hence the target that the Commission has set is that "everyone should be entitled to choose their supplier". And that means, above all, non-discriminatory access to gas and power distribution networks. "The various access conditions between Member States establish discriminatory criteria between consumers and create reciprocity problems between the countries", said Miss de Palacio.A genuinely level playing field can only be reached with 100% market opening everywhere. And one area where there is room for improvement is among the transmission system operators, who need to be more independent in order to avoid discrimination between users. Another measure would be publication of transmission tariffs, "which should become the standard" in both electricity and gas sectors.As for import/export charges, Miss de Palacio recalled that "if there is no effective and rapid progress in this area, the Commission will prepare legislative proposals".Infrastructure.The Commission also recognises that the capacity of the interconnectors that link up various EU countries' grids, should be boosted and it will soon be proposing a European plan for electricity infrastructure. Miss de Palacio nevertheless pointed out that the weakness in this area comes more from local resistance on environmental grounds than from any lack of investment.The Commissioner brushed aside the idea that liberalisation would lead to poorer public services, arguing that adequate legislation was enough to ensure an appropriate service. In fact, liberalisation leads to the creation of "innovative services" such as supplies of environmentally-friendly power. The Commission will soon be publishing the findings of the first comparison of the various services offered to EU energy consumers.Efficiency.The Energy Commissioner also highlighted the role of energy efficiency in enhancing competitiveness. She informed the hearing that the Commission is planning a new draft directive on energy savings in buildings and an action plan on energy efficiency. She is confident that "environmental standards improve within liberalised markets".

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