Strasbourg, 12/07/2007 (Agence Europe) - The speech delivered by British MEP Eluned Morgan in plenary session on Tuesday, prior to the vote on the Vidal-Quadras report on the prospects for the electricity and gas internal market (see EUROPE 9465 and 9466), made quite an impact. While, like most of her peers, supporting ownership unbundling, separating energy operators' generation and network activities, she highlighted the dangers of hedge funds and private equity buying up networks after the break-up of the energy groups, then failing to provide the investment needed for the internal market to function properly.
“I hope the Commission will heed the vote of the (energy) committee (Ed: in support of ownership unbundling, later confirmed in plenary session) when preparing the revision (of the 3rd legislative package on the internal market) and not kow-tow to member states which protect companies that overcharge their customers. They have a vested interesting maintaining a system where there is an inbuilt conflict of interests which stops competitors from having access to the same market. These are often the same companies which care more about giving profits to their shareholders than providing serious investments,” Ms Morgan said. She went on, “I urge you (Ed: the Commission) not even to offer the ISO model, which would require a magnificently complicated regulatory system which would have to be policed by an army of officials, but understand also that ownership unbundling needs rules. We need to ensure that we protect energy networks from hedge funds or private equity, which will not give the long-term investment commitment that is necessary,” she warned. She also highlighted the risk of networks falling into the hands of third country operators. “Let us stop third-country companies from buying either generation or energy networks if there is no reciprocal agreement with that country,” she said.
The British MEP also called on the Commission “to put right the false impression on ownership unbundling spun by the German presidency following the last Energy Council meeting”. “The majority of member states are in favour of full ownership unbundling, especially in electricity,” she continued, before concluding: “Do not be bullied by the big boys and let democracy and the consumers speak”. (eh)