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Europe Daily Bulletin No. 9326
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GENERAL NEWS / (eu) eu/energy

Sixteen Member States nailed for failure to correctly open up their electricity and gas markets to competition

Strasbourg, 12/12/2006 (Agence Europe) - On Tuesday, the Commission sent 26 reasoned opinions to no fewer than 16 Member States for failing to transpose the 2003 Community directive on opening up gas (2003/55/EC) and electricity (2003/54/EC) markets, which is to ensure consumers have a free choice of gas and electricity providers by 1 January 2007. Member States targeted by the second stage of infringement procedure are: - Germany (electricity); - Austria (electricity); - Belgium (electricity and gas); - Spain (reasoned opinions on complaints for gas and electricity); - Estonia (electricity); - France (electricity and gas); - Greece (electricity and gas); - Ireland (electricity and gas); - Italy (electricity and gas); - Latvia (electricity); - Lithuania (electricity and gas); - Poland (electricity and gas); - the Czech Republic (electricity and gas); - the United Kingdom (electricity); - Slovakia (electricity and gas); - and Sweden (electricity).

Luxembourg, for electricity and gas, and also Spain, for gas, were found guilty of non compliance by the Court of Justice on 19 May 2006 and 16 November 2006 respectively, and the latter may soon be found guilty of failure to transpose the directive on electricity. Portugal at this time remains at the stage of formal notice for failing to transpose the directive on opening up the electricity market, as does Hungary, whose national measures for implementing the directive on gas are being examined. In addition, only Finland has put forward sufficient arguments to bring the proceedings against it to an end, while Austria has been able to justify its action regarding the gas market.

The Commission feels that the responses received to its letters of formal notice reveal persistent transposition problems: - regulated tariffs that block the arrival of new entrants as well as free provider choice, insufficient unbundling, discriminatory access by third parties to the network (mainly the maintenance of preferential access for traditional operators), insufficient regulatory powers (in particular for access to networks and to pricing), the absence of notification of public service obligations and the insufficient indication of the source of electricity. Member States now have two months in which to present their observations to the Commission that will then decide whether or not to refer the matter to the European Court of Justice. (eh)

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