Brussels, 30/01/2002 (Agence Europe) - Connecting and opening up energy markets is an essential component of the process of broadening European integration and meeting the Lisbon objective of making Europe the most competitive economy in the world by 2010. This was the essence of the message put across last week by the Spanish Energy Minster José Folgado to MEPs in the EP's Industry, Foreign Trade, Research and Energy Committees. Mr Folgado repeated the Spanish Presidency's priorities for energy, stressing the need to stimulate dialogue over energy issues with Latin American and Mediterranean countries, along with Russia.
Mr Folgado said that the Commission's ambition was to strike a political agreement over opening gas and electricity markets up to competition, first of all for companies, but as a second priority also for domestic customers as soon as possible. This view coincides with the ideas expressed by the Vice-President of the European Commission, Loyola de Palacio, the next day in the French newspaper "Le Monde" (see EUROPE of 28/29 January, p.17). Mr Folgado explained that the Spanish Presidency could not accept anything less than greater transparency and clearer rules on third party access to networks since these were essential for equal opportunities and greater competition. In order for the single electricity market to work properly, clear and uniform rules for setting tariffs and managing cross-border energy flows had to be introduced, he added. Alluding to the Commission's recent proposals on trans-European energy networks, Mr Folgado stressed that providing adequate interconnection was the necessary "physical" adjunct to the proposals for a free energy market. He explained that the Spanish Presidency would be paying full attention to examining the proposals on interconnection point by point and the proposals would be the focus of a seminar in Pamplona on 26/28 April which aimed to widen the debate around such an important issue.
Addressing the question of security of energy supply, the Spanish Minster told MEPs that the Presidency hoped to reach agreement on the proposals unveiled by the Commission at the end of last year for the temporary state aid scheme for the coal industry that, along with renewable energy, should help maintain a "homegrown" energy supply. Mr Folgado said that the Presidency would be paying full attention to the proposals concerning renewable energy and the promotion of biofuel in order to achieve "significant progress" in these areas.
In terms of rational use of energy, Mr Folgado said that he would ensure that the legislative procedure for the directive on the energy efficiency of buildings was drawn to a close (the Belgian Presidency managed to strike an agreement in this connection in December 2001). He stressed that stops would be pulled out to ensure that the new SAVE/ALTENER programme for 2003-2006 (that the Commission is preparing to unveil) could be adopted before the end of 2002 (under the Danish Presidency). He also hoped that the Commission would put forward a proposal on cogeneration before the end of the first six months of 2002 since cogeneration increased the competitiveness of businesses, was environmentally friendly and helped safeguard energy resources.
Mr Folgado expressed the Presidency's clear interest in extending energy relations with third countries, particularly in Latin America and around the Mediterranean. Commenting on the Energy Charter and the protocol on energy transit, he recognised that many issues still had to be settled, but that was why is was so vital that the negotiation process was pursued. He added that it was essential that the protocol was coherent with Community regulations on the internal energy market. He informed MEPs that the Presidency would be continuing with the energy negotiations with Russia, following the setting of guidelines at the EU/Russia summit in October 2001. He concluded by saying that they would be pointing out that no progress could be made in this area that risked damaging the environment.