Strasbourg, 10/07/2007 (Agence Europe) - With the adoption on Tuesday of the own-initiative report by Alejo Vidal-Quadras (EPP-ED, Spain) on the prospects for the internal market for electricity and gas, the European Parliament took a clear stance in favour of ownership unbundling of transport networks from energy operators' other activities (production, extraction, distribution and marketing). Confirming the vote in the energy committee on 18 June (EUROPE 9449), the EP states that ownership unbundling is “the most effective tool to promote investment in infrastructure in a non-discriminatory manner, fair access to the grid for new entrants and transparency in the market”. It recognises, nonetheless, that this model cannot give an answer to all questions at stake such as interconnection and congestion points.
The EP supports a more flexible approach for the gas sector which, in its view, “requires specific solutions” taking into account the differences between upstream markets and downstream markets. In other words, the EP considers that there is no reason not to apply ownership unbundling on gas pipelines operating in the internal market, but that a more flexible approach is, however, required for gas pipelines that carry gas towards the internal market from third countries. It therefore calls on the Commission to present a “balanced proposal” allowing European gas companies to use investment in the new gas pipelines upstream and the long term markets to strengthen their negotiating position compared to third countries. It also stresses that no third country company should be authorised to buy European energy infrastructure unless there is reciprocity with that country. The EP stresses the need for upstream long term gas contracts to ensure a favourable investment climate on condition that it does not rule out new entrants.
With the rejection by 406 votes (against 245 votes in favour and 22 abstentions) of an amendment by Herbert Reul (EPP-Ed, Germany), the EP gives clear support to the principle of ownership unbundling, the most radical solution that the Commission has privileged to contribute to better functioning of the internal market. The ball is now in the court of the Council which remains far from consensus on this issue as can be seen by the results of the last Energy Council on 6 June (EUROPE 9441).
Claude Turmes (Greens, Luxembourg) welcomed the vote which gives a clear mandate to the Commission to put an end to the oligopolistic strategy in France and Germany. “Total opening to all consumers only has some meaning if the wholesale electricity and gas market works. This is a great day for European consumers both big and small”, he added. Speaking through the voice of Catherine Trautmann, the French Socialists deplore the fact that the “position defended by the supporters of dogmatic liberalisation and by those in favour of dismantling large enterprise has won the day to the detriment of the public service and consumer mission”. “Focusing on ownership unbundling alone could prove counter-productive as this solution does not provide any guarantee in terms of investment, access by third parties to the network and the availability of affordable energy for citizens”, Ms Trautmann said, supporting maintaining the “French model” which is based on legal unbundling in line with the 2003 European directives and allowing effective independence of network managers thanks to strong regulator intervention.
EUROPE will come back tomorrow on the other main elements of the Vidal-Quadras report. (eh)