Brussels, 16/05/2001 (Agence Europe) - The Council devoted most of its debates in the liberalization of gas and electricity, as well as the security of supply in Europe. Ministers also briefly discussed several recent European Commission proposals and adopted conclusions on the integration of environmental concerns in European energy policies.
Security of supply: as EUROPE announced (14/15 May, p.12), the Council adopted conclusions on the Commission's Green Paper "Towards a European strategy for the security of supplies", while awaiting a more definitive position in December. Summarizing the debate, Council President Lars Rekke said that Member States placed emphasis on the need to pursue the structured dialogue with producer countries, especially OPEC and Russia. They did, however, show great reluctance regarding the project for a common management of stocks, as proposed by the Commission. Ministers acknowledged the importance of renewable energies. They considered that transport and transit infrastructures needed improving, especially in the framework of the trans-European networks. "All energies must be examined according to their own merits taking account of the need for sustainable development, and national characteristics and national preferences for different energy mixes", the Presidency noted, after a debate in which Germany and Spain placed emphasis on the retention of coal production.
Internal gas and electricity market: Ministers had an initial in-depth debate on the complete liberalization of the energy market in Europe. The Commission proposed a directive and a regulation on: 1) separation between transmission and distribution; 2) third party access to networks; 3) application of transparent pricing rules; 4) regulatory tasks; 5) obligations to provide a public service; 6) relations with third countries.
As we mentioned, Germany is reluctant over the introduction of a single regulator, whereas France, Belgium and Luxembourg are more opposed to the 2005 deadline proposed by the Commission. Concluding the debates, the Presidency said that a majority of States were in favour of the separation of transmission and distribution, but "certain modalities need clarifying". Several States, including Ireland and Greece, for example, fear excess bureaucracy, whereas in fact they would be the least concerned by the liberalization of the energy market. All delegations place emphasis on developing ties with third countries. Austria and Germany, however, insist on "reciprocity" in environmental rules. They would like the question of the financing of the infrastructures to be carefully taken into account. Commissioner Loyola de Palacio said that the Commission would present proposals in September to enhance network inter-connection capabilities, in the framework of the TENs. "It is a question of some 20 to 30 million euro", she stipulated.
Energy and the environment: the Council adopted conclusions in the perspective of the European strategy for the environment to be presented at the Gothenburg Summit. It calls on the Commission to present a series of measures to: 1) enhance coordination or devise common policies in energy efficiency; 2) promote the combined production of heat and energy; 3) increase the share of renewable energies in energy supply, notably biomass; 4) prepare the follow-up to the energy framework-programme that expires end-2002; 5) present the results of the study on the trade in emission rights, so as to draw up a common Community framework for 2005; 6) make a comparison of measures currently taken to promote renewable energies and envisage pilot projects for the trade in energy on the basis of "green certificates"; 7) ensure that trade in electricity with third countries takes account of environmental standards. At the end of the debate, Commissioner de Palacio recalled the Commission's right of initiative.
Energy saving in buildings: the Council simply "took note" of the Commission's draft directive, intended to improve energy efficiency through standards and a common certification system (see EUROPE of 25 April, p.9 and 26 April, p.7).
Regional cooperation: Commissioner de Palacio presented her latest report on Euro-Mediterranean cooperation in the Energy sector (see EUROPE of 22 March, p.10).. While acknowledging that it was only an assessment and not a proposal, Ms. de Palacio, told the press that "we agree that the dialogue with Mediterranean countries is strategic, many of these countries being transit countries for gas or oil from the Gulf and the Caspian Sea. We assess the level of investment required in the region at 200 billion euro in the next 20 years". For its part, the Presidency called for progress in the "Nordic" strategy regarding energy, without arousing comments from his colleagues.
Energy charter: The Commission noted that the ratification by Russia of the Energy Charter signed in 1994, has not progressed, notably due to Gazprom opposition, reveal diplomatic sources.
EU/Russia dialogue: The Council took note of a speech by Commissioner de Palacio in advance of the EU/Russia Summit on 17 May. We are progressing towards a complete assessment of the viability and resistance of the Russian oil and gas pipelines, indicated Commissioner de Palacio, when adding what must be established, is a framework covering the whole production chain, from the well to distribution.