Brussels, 01/12/2005 (Agence Europe) - Meeting in Brussels on 1 December, EU energy ministers discussed the impact of implementing the June 2003 2nd legislative package of measures to create a free internal market in gas and electricity, in the light of the European Commission's last two reports on the functioning of the single market in energy and the preliminary conclusions of the investigation into the energy industry carried out by DG Competition. The President of the Council, Malcolm Wicks, said the Hampton Court Summit of 27 October had seen EU heads of state decide to adopt a common approach to a common energy policy in order to tackle effectively issues like climate change, high oil prices and the internal energy market. He said that Better Regulation was now needed and the single energy market had to be stepped up. At the final press conference, Wicks said the Council had unanimously agreed that a secure gas and electricity supply was vital under transparent conditions in line with the need to protect the end consumer and competitive prices and this was vital for the EU market. He added that it would also be necessary to strike the right balance between a competitive market, security of supply and meeting environmental demands. Taking note of reports by the Commission outlining serious malfunctioning in the internal energy market, the ministers agreed that a full enquiry should be held to determine the causes (the impact of long-term gas contracts, carbon trading, primary energy prices, market concentration and overcapacity) before unveiling a new package of legislation. The Council agreed that opening of the energy market had not been as speedy and complete as had been anticipated, and therefore existing legislation had to be fully implemented in all Member States, not only on paper but also in spirit, explained Energy Commissioner Andris Piebalgs.
Mr Piebalgs was of the view that the existing legislation should be brought into effect if the hoped-for results are to be achieved, and especially so that consumers can choose their providers at the best possible price. He believed it would take the Commission one year to conduct concerted action and, where necessary, propose a third legislative package. Mr Piebalgs nonetheless gave his assurance that the Commission would continue with its infringement procedures against those lagging behind and take the necessary measures to force through the transposition of the texts into Member State law.
On the subject of enhanced market integration, the Council stressed the need to better develop networks at regional level focusing on the abolition of cross-border trade barriers. In this context, he expressed his concern regarding the obstacles that hamper investment in cross-border infrastructures and stressed the need to encourage investment by ensuring stability of the regulatory framework. Speaking at the press conference, Mr Wicks evoked the poor interconnection situation, although interconnection is an essential means to guarantee more significant flows in electricity and gas (the United Kingdom is concerned about the decline in North Sea gas production). The Council also stressed that the national regulatory authorities and the competition authorities should play a more significant role in order to contribute to greater liberalisation of markets and in order to ensure that market players have fair access to information. Mr Piebalgs recalled that they want independent regulators with the same powers, greater cooperation between the different systems, and especially when it comes to questions relating to access to the cross-border network. He went on to stress that the Commission would support all national initiatives aimed at developing a European energy network. Finally, the Council stressed the need for equitable and non-discriminatory access to networks for all users in order to help competition develop and also for effective unbundling between the activities of different operators.
Speaking to the ministers, Competition Commissioner Neelie Kroes invited Member States to step up their efforts to ensure an integrated and competitive internal market. She went on to warn: “I share your concerns about security of supply. However (…), 'security of supply' must not be mistaken for 'security of incumbents'”. She then added: “And neither can up-stream stability be an excuse for downstream immobility” in the energy sector. “Security of supply can only be achieved through more market integration and (…) more market integration can only be achieved through more liberalisation and more competition”, she stressed.