Brussels, 17/01/2002 (Agence Europe) - The European Commission is contemplating liberalisation by decree of the gas and electricity markets if the issue does not move forward under Spanish Presidency, that is, if France continues in its obstinate refusal to open the energy market up to competition.
Encouraged by a recent declaration in the daily Le Monde by EDF President François Roussely, who says "in Barcelona, we could enter a new stage by enlarging the circle of clients eligible to all professional actors, and no longer only to large industrialists" if the opening comes between 2003 and 2005 and if liberalisation for households is postponed. The European Commission said, on Wednesday, that it was convinced France would, after the spring presidential election, agree to liberalise almost all the gas and electricity market. The Commission warned the French authorities that it would not hesitate to liberalise "by decree" if necessary and invited the European governments to isolate Paris for not being bound to use this formula. "Qualified majority vote must be used whenever possible", stressed Commission President Romano Prodi, urging the Member States in Strasbourg to put France in a minority position on the issue. Last Monday, in Madrid, the Commission Vice-president responsible for energy and transport, Loyola de Palacio, had threatened to use her powers for the protection of the single market by decreeing liberalisation, through Commission directive, as was the case in the nineties for the telecommunications market. This solution, that the Commission had already threatened it would resort to last June the day after the Stockholm Summit (see EUROPE of 21 June 2001, pages 8 and 9) was clearly confirmed on Thursday by the spokesperson for Ms de Palacio, Gilles Gantelet. The latter stressed that "Ms de Palacio's intention is to see what will happen in Barcelona and then in the Energy Council in June". He specified that "the Commission awaits a Council common position in June with dates for market opening for the professional sector (2003 for electricity and 2004 for gas) - a timetable to which the EDF President seems to subscribe - but that it would show flexibility when opening up the residential market". In other terms, it does not plan to enter into a fight over the 2005 deadline proposed for opening up the household market and could be satisfied with simply a "commitment" on the part of the Council on this point. However, if no common position is reached in June, the Commission seems decided to adopt directives itself on the basis of Article 86 of the Treaty, and in particular under its 3rd paragraph, to face up to any competition distortion in the energy sector.
Whatever, the debate is far from closed. Reacting to the Commission's threats on Thursday, French Minister for European Affairs Pierre Moscovici declared in substance that any attempt to impose liberalisation on France's energy market in the near future would be doomed to failure. "No one is interested in conflict", he said, adding that "the right balance must be found between liberalisation and reality and no dogma should be imposed by a handful of officials or political leaders (…) One must compare what is comparable and not confuse capital opening with market opening". The French await "calmly, very calmly" for any action that might be taken by the Community authorities, he concluded. French Economy Minister Laurent Fabius had, for his part, said early in the week that EDF could be partially privatised, with the State remaining the main shareholder.