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Image header Agence Europe
Europe Daily Bulletin No. 10731
SECTORAL POLICIES / (ae) energy

Time to complete the internal energy market

Brussels, 15/11/2012 (Agence Europe) - The Commission urges member states to step up their efforts to transpose and implement existing rules for the internal energy market, and seeks to work with member states to empower consumers and to reduce state interventions which distort markets.

In a communication unveiled on 15 November by Commissioner Günther Oettinger, the European Executive presents several measures for stimulating completion of the internal market by 2014, an objective fixed by the European Council in February 2011. While considerable progress has already been made in terms of offering more choice for consumers, keeping wholesale energy prices in check and securing sufficient supplies at all items, more needs to be done to reduce competition distortion.

First and foremost, the Commission is pressing for full implementation of the laws relating to the internal market and application of the rules of competition. The date limit for transposition of the 3rd legislative package for liberalisation of the internal energy market was fixed for March 2011 (electricity directive 2009/72/EC and gas directive 2009/73/EC which provide for the unbundling of networks, i.e. the separation of network activities for electricity and gas from generation, production and supply; as well as the protection of consumers and strengthened independence and harmonised powers of the national regulatory authorities). Some member states, however, have still not transposed that package. Oettinger therefore promises to clamp down on this through infringement proceedings and referrals to the Court of Justice.

The European Commission also wants to fully empower citizens. If they were to switch to the cheapest electricity tariff available, after a comparison of offers of service (something that only one third of consumers do at present), European consumers could make considerable savings, the survey concludes. Savings could be up to €13 billion annually, the Commission stresses, promising to ensure that consumers' rights under EU legislation are visible in national law and respected by all stakeholders. This includes the right to switch from one supplier to the other in three weeks without any financial costs. The Commission also wants to promote the roll-out of smart metering systems as this will help consumers to manage their consumption in real time and provide protection for vulnerable consumers.

Still on the subject of consumers, the Commission promises to continue targeting regulated retail energy prices which, as it reiterates, can deter consumers from seeking the best deal for energy efficiency and hinder investment by preventing companies from entering the market and investing in new production means. Only nine member states do not have regulated retail energy prices in place (Austria, Czech Republic, Germany, Finland, Luxembourg, the Netherlands, Slovenia, Sweden and United Kingdom), but the Commission will continue to call for timetables to be set in place for the suppression of regulated prices, and for retail prices according to market principles to be promoted, including by launching infringement proceedings against member states that keep price regulation not compliant with EU law. (EH/transl.jl)

Contents

INSTITUTIONAL
SECTORAL POLICIES
ECONOMY - FINANCES
SOCIAL AFFAIRS
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU