Brussels, 14/02/2007 (Agence Europe) - In the perspective of the European Council on 8-9 March, which is due to adopt an action plan outlining the priorities for an overall energy policy for Europe, Union energy ministers will be voting on Thursday on proposals from the package on energy and climate change adopted by the Commission on 10 January (EUROPE 9341). Following the presentation of the package by Commissioner for Energy, Andris Piebalgs, the Energy Council, chaired by the German minister for the economy, Michael Glos, will hold a political debate before adopting conclusions for its contribution to he Spring European Council. Environment minsters will be called to do likewise on 20 February.
Following intense discussions about the basis of the project elaborated by the German presidency, which led to “une reserve d'attente” issued by the Netherlands and Denmark, an agreement was obtained at the Committee of Permanent Representatives (COREPER) on the Energy Council's draft conclusion, which are as follows: an introduction in which the Council support the generally ambitious greenhouse gas emission reduction objectives set out by the Union for 2020. In January, the Commission proposed a unilateral reduction objective of 20%, a figure that is not, however, included in the latest version of the draft conclusions; a chapter on renewable energies and energy efficiency; a chapter on the internal gas and electricity market; a chapter on security of supply and the question of solidarity between member states; a chapter on energy technologies; a chapter on international energy policy in which there is no reference to Mr Glos' suggestion of providing “specific mandates” to a team formed by the Energy Commissioner and president of the Council to “represent the energy interests of the Union in the world” (speech to the European Parliament, EUROPE 9355).
Two pending questions, however, are expected to shake up the work of the Energy Council. The first focuses on the nature of the objectives for renewable energy and biofuels. As we previously explained (EUROPE 9363), although the level of the objective proposed for renewable energies in the Union's total consummation by 2020 gains consensus at the EU27, it character has been the subject of a number of differences between the three groups of member states. Although it apparently has the support of Germany, the binding nature of this objective is expected to fall short of obtaining unanimity. The draft objective binding market share for biofuels was also the source of divergences between member states. As we indicated, the German presidency firstly defended the objective of 12.5% before reducing its ambitions to a 10% target.
The second question pending involves how the internal market works and the difficult dossier involving the separation of production activities from the energy operators' network. The internal market will also be one of two subjects in the political debate (the other is on clean, low carbon technologies) and the strategic plant for energy technologies) that energy ministers will discuss Thursday. They are expected to respond to the following questions elaborated by the German presidency: what conditions can guarantee the functioning of the gas and electricity markets and ensure security of supply, what are the most important?; what framework conditions should be created in the internal market to guarantee more competition and security of supply among the following suggestions: sufficient investment in electricity plants and gas and electricity networks; greater variety of providers and a cross border electricity trade?
COREPER's preparatory work did not in any case lead to a consensus on the conclusions of the Energy Council on the internal market, due to the sharp differences on the question of unbundling. Although some member states were clearly in favour of ownership unbundling, like the United Kingdom, others, led by France (Germany maintained its reservations, as its presidency of the Council dictates), declared it useful to look at other options other than the two presented by the Commission. The most radical solution being that of a more flexible ownership unbundling and the setting up of an independent network manager (“ISO+” solution). France is proposing the option of a “regulated” unbundling mix by way of adapted legislation.
A COREPER report highlighted the fact that, “These delegations confirmed that the suggestions included in the expanded range of possible solutions cannot be resumed with the maintaining of the status quo and should reflect the appropriate balance between effective and possible strengthened regulation and increased competition”. On the initiative of the German presidency, energy ministers are expected to bring their views closer together at dinner “in one to one meetings without their advisers”, according to the expression employed by a Community source close to the dossier on the question of unbundling. But the evidence would appear to suggest that while attempting to predict the Council's conclusions, differentiated treatment of unbundling of the activities of the gas and electricity sector or the transmission and distribution network, means that the German presidency will have to scrutinise this issue very carefully. (eh)