Brussels, 24/09/2007 (Agence Europe) - Opinions on the 3rd legislative package on liberalising the internal energy market set out by the European Commission on 19 September (see EUROPE 9505) are divided among interest groups too.
Energy sector - Eurelectric, the Union of the Electricity Industry, highlights the main “positive” points in the package: the common approach for electricity and gas, the impetus given to regional cooperation and the proposal to set up a Community agency to strengthen cooperation among regulators. However, it complains that the Commission has not done enough on regional integration: Eurelectric would have preferred to have seen regional transmission system operators (TSOs) instead of ownership unbundling of energy operator's activities with national TSOs. While, in general terms, the European Federation of Energy Traders (EFET) backs the Commission proposals, it, nonetheless, feels that they are too focused on national structures to the detriment of the development of regional markets. The European Federation of Local Energy Companies (CEDEC) is pleased that distribution system operators are not to be included in the ownership unbundling. From the renewable energy sector, the European Wind Energy Association (EWEA) welcomes “a good job, but half done” towards an integrated internal market. EWEA, which backs ownership unbundling, reproaches the Commission for having given in to pressure from a “handful” of member states by tabling an alternative to ownership unbundling, the “ISO” option, which will allow large vertically integrated utilities to retain ownership of their networks. “Fair grid access is an absolute minimum requirement if the EU is to meet its objective of 20% renewable energy by 2020,” says EWEA, which believes, moreover, that the “ISO” model will require increased monitoring and detailed regulation.
Business - At this point, BUSINESSEUROPE, the confederation of European businesses, is remaining neutral on the issue of effective unbundling, to give itself the time to examine the Commission's proposals. It welcomes, however, proposals to strengthen regulators' powers. The European Association of Craft Small and Medium-sized Enterprises (UEAPME) expresses its “mixed feelings” towards the Commission proposals. While welcoming the fact that the Commission prefers ownership unbundling, the UEAPME feels, however, that it has not gone far enough with regard to the European regulator. It says the Agency for the cooperation of Energy Regulators will not be a strong enough body to control energy giants if the “ISO” system is adopted. The SME Union, which is affiliated to the EPP-ED group in the European Parliament, fully supports the Commission's plans for liberalising energy markets, and in particular the ownership unbundling option which, it says, “stimulates investment, reduces market concentration and brings down prices”.
Consumers and Unions - The European Consumers' organisation BEUC says the ownership unbundling option is “positive” but “will fall short”. It calls for the Charter on the Rights of Energy Consumers to be legally binding. John Monk's European Trade Union Confederation (ETUC) accuses the Commission of continuing “pursuit of liberalisation of the European energy market at all costs”. ETUC says the Commission's legislative package “runs counter” to the objectives of protecting the most vulnerable consumers and fighting climate change. Furthermore, it re-states its opposition to ownership unbundling, noting that experience in some member states which have chosen this option has shown that it does not always bring a reduction of prices and can undermine the maintenance of installations. ETUC believes that this most radical option is not the most appropriate for supporting the development of renewables. To meet the dual challenge of investment and of bringing energy consumption under control, “we need a committed, public industrial policy, linking investment programmes, research and development and regulation of energy prices” it says. (eh)