Brussels, 30/01/2007 (Agence Europe) - Having come to the Parliament to set out the Council presidency's priorities in the areas covered by the industry and energy committee, German Economy Minister Michael Glos confirmed that the energy policy was at the top of his work programme. At its meeting on 8-9 March, the European Council is due to begin an “integrated debate” on the energy policy ands climate change to adopt an action plan “graduated according to priorities”, he said, giving assurances that, to this end, the Commission's package of proposals provided a “good basis”.
The German presidency's first aim is to enhance the EU's ability to speak with one voice in its external energy relations in order to improve its relations with producer countries. “Why shouldn't the Energy Commissioner and the Council President form a negotiating team which is given specific mandates to work together to represent our energy interests in the world?” Mr Glos suggested, stressing, too, the need to increase cooperation and to negotiate a new partnership and cooperation agreement with Russia. The extension of the energy community to include Norway, Turkey, Moldova and Ukraine, and the transfer of the principles of the open market to neighbouring countries are two of Berlin's further objectives in the area of external energy relations.
On integration and the best working of the internal gas and electricity market, the German presidency stresses three priority aspects. The Twenty Seven will first of all have to examine the ways to encourage the necessary investment in new electricity plants and strengthen diversification of suppliers in all regions of the EU. “The companies should have an incentive to invest in new power stations in other regions and thus compete with the incumbents”, Mr Glos felt. The Twenty Seven should also discuss the setting up of a simple and integrated network access system for cross-border energy exchanges so that markets which have so far been largely nationally separated, will be able to grow together, he went on. The last, and most awaited, aspect will be the “effective” unbundling of production and network activities of energy operators. “We wish to engage in an unprejudiced discussion of all options during our Presidency,” Mr Glos promised, concealing only with difficulty Berlin's reluctance to commit to the radical option of ownership unbundling proposed by the Commission. “To start with, the existing rules must be fully implemented. It is necessary to examine whether, and if appropriate where, this legal unbundling displays deficiencies,” he said, giving assurances, however, that the Council will discuss “all the pros and cons” of the two options put forward by the Commission: the more flexible option of an independent system operator (ISO) which would allow operators to give up management while retaining ownership of the transport network, and the option which would separate ownership. For the latter, “we need the support of the large operators,” Mr Glos warned. Reading the draft conclusions of the Energy Council of 15 February, drawn up by the German presidency and due to be discussed in the COREPER this Friday, it is easy to see that Berlin intends to delay making a decision on this matter. “Energy Ministers reaffirm their commitment to ensure on time full implementation in letter and in spirit of existing Internal Market legislation relating to the opening of the gas and electricity markets. … They invite the Commission to present all the modalities for an effective separation of supply activities from network operations, including the further development of existing legislation and the Commission's proposals on an independent system operator and ownership unbundling,” says the draft text. The March European Council is not expected to make a radical decision on this issue.
Finally, the German presidency had put renewable energy and energy efficiency at the heart of its work programme. Mr Glos stressed that in addition to the target level to be reached in renewables in the energy mix (the Commission has proposed 20%), “it is a question of whether this objective should be binding, and what the objective specifically means for each individual member state”. On energy efficiency, the Twenty Seven should “orient ourselves to the savings potential of 20% up to 2020 as estimated by the Commission,” he said, highlighting three strategic elements - the energy performance of buildings, more rapid adaptation of energy consumption labelling and the reduction of energy losses from appliances on standby. Mr Glos also said that the Council would, under German presidency, begin negotiations on an international energy efficiency agreement. Finally, he said that, in its discussions with member states, the presidency “will orient ourselves to the Commission's two-stage approach”, which consists of a unilateral commitment on the part of the EU to reduce CO2 emissions by 20% by 2020 and a provision to reduce them by 30% if the industrialised and emerging nations commit to doing the same through an international agreement. (eh)