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Europe Daily Bulletin No. 10926
SECTORAL POLICIES / (ae) energy

EU must fast meet internal market and external side challenges

Vilnius, 20/09/2013 (Agence Europe) - The Lithuanian Presidency of the EU Council is trusting there will be greater coordination and more solidarity among the EU28 for stimulating a European economy that is currently prey to a sometimes fragile energy supply and ever-increasing prices for EU consumers and business.

In line with the priorities that it set for the term of its presidency of the Council during the second half of 2013, Lithuania put the issues of completing the internal energy market and strengthening the EU's position regarding its energy partners at the heart of the informal meeting of European energy ministers, in Vilnius on 19-20 September.

On Friday, during a working session devoted to the internal market, ministers expressed their “determination” to do everything necessary to ensure that the integration of gas and electricity markets is accomplished in time, within the timeframes set by the European Council - in 2014. Given the time it has taken so far to make any headway, this is an objective that remains more political than realistic. The same is true for the timeframe fixed for interconnection of the most isolated countries of the European energy system, of which Lithuania and the other Baltic States are a perfect illustration.

Friday's exchange of views will fuel a progress report that the Presidency will present to the European Council in December. Once again, there are some bold promises. “The EU member states once more committed to making every effort in order to promptly complete the process” for implementation of the third legislative package for the liberalisation of the electricity and gas markets, Lithuanian Minister for Energy Jaroslav Neverovic said. The ministers underlined that by de-monopolising the market and implementing the package's measures coherently this will ensure not only competition between providers but also a fall in prices for consumers, he added.

Neverovic also promised that a new step would soon be taken towards integration of the internal market, with the forthcoming publication of the list of energy infrastructure projects of common interest, announced by European Commissioner for Energy Günther Oettinger “for October”. These infrastructure projects - which are essential for interconnecting national markets but which only the market can take on - will be eligible for Community funding and will benefit from construction permits being granted more swiftly.

Questioned by the press on the Italian-Russian project for the South Stream gas pipeline, which will link Russia to South East Europe, Oettinger repeated that it would not be on the list. “We don't have a problem with South Stream, but we don't think that this project is a priority for the EU”, he said, stating that it is not based on a new supply source. Oettinger nevertheless assured the Russian project “a loyal partnership”.

During the first working session on Thursday, which focused on a theme closely linked to that of the internal market - the external dimension of energy policy - the Commission presented the member states with a report assessing the progress in implementing the specific measures proposed by the Commission in September 2011 to help the EU “speak with a single voice” to its third country supplier countries. On Thursday, the member state representatives once again stated their resolve to coordinate the EU's external energy policy in order to reach basic solutions on the problem of high energy prices on the EU internal market.

“I have no doubt that by applying the same rules and, whenever it is possible, expressing the same opinion, we would develop a more stable and transparent relationship with our external partners”, said Neverovic, stressing that the efforts aiming to ensure a level playing field for the EU's electricity producers in the face of external producers in the European Economic Area would contribute to creating mutual fair competition in the internal market.

The ministers also expressed their support for the extension of the energy community, which brings together the EU and neighbouring countries (Albania, FYROM, Kosovo, Moldova, Montenegro, Serbia and Ukraine) so as to create and integrated market on the basis of the acquis.

Result of investigation into Gazprom in spring. On the sidelines of Thursday's meeting, when questioned by the press, Oettinger predicted that the results of the investigation launched in September 2012 into the Russian gas company Gazprom would come out in spring 2014. Gazprom is suspected of practices of unfair competition and price manipulation in several countries in Central and Eastern Europe (Poland, Czech Republic, Slovakia, Bulgaria, Hungary, Lithuania, Latvia and Estonia), which are all dependent on its supplies. Giving assurances that the investigation has no political connotation, Oettinger urged Gazprom to “accept and respect” European competition rules. (EH/transl.fl)

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