Brussels, 12/01/2007 (Agence Europe) - While the European Trade Union Confederation (ETUC) welcomes the adoption of independent targets on reducing greenhouse gas emissions (although it had argued for a more ambitious 25% target) in the energy and climate change package adopted by the Commission on Wednesday (see EUROPE 9341), it believes the proposals to pursue energy market liberalisation to be reckless. “In presenting the ownership unbundling of network activities and distribution as the 'ideal' solution, the Commission continues to support a liberal model that has given ample proof of its limits, in particular in the United Kingdom, the cradle of energy liberalisation,” says ETUC. It believes that “the European energy model must be reformed to respond to the dual challenge of investment and of controlling energy consumption. That requires public authorities to undertake the determined pursuit of an industrial policy that combines the planning of investment, research and development, worker training and regulation of energy prices”. “Clearly, what is needed is more cooperation between players in the sector, not more free market or more competition,” said ETUC General Secretary John Monks. ETUC also argues for a border tax adjustment system, something that was rejected by the Commission at the request of Trade Commissioner Peter Mandelson even though it had been among the recommendations of the High-level Group on Competitiveness, Energy and the Environment. “The Commission's position does not reassure us with regard to the prospects for electricity-intensive industries in Europe and their workforce, in the face of carbon constraint that is bound to grow stronger and competition from developing countries outside Kyoto,” Mr Monks went on. ETUC considers, too, that the Commission's proposals in the transport and domestic sectors fall short and could fail to meet their target for 2020.
The European Federation of Public Service Unions (EPSU) sees the energy package as “a PR exercise to justify higher energy bills and disguise the failure of liberalisation”. The energy package, EPSU says, is a way of preparing Europe's citizens for increases in their gas and electricity bills, with no guarantee that the companies will invest in networks, power stations and staff. “The lack of investment will lead to deterioration of quality and security and ultimately to more blackouts. We need cooperation, not the Commission's promotion of wasteful competition in the electricity and gas sector,” it insists. On new powers for European regulators, EPSU advocates a role for advisory councils. Finally, EPSU is very critical of the lack of social dimension and failure to address growing energy poverty. (eh)