Beyond the launch of the now inevitable great European debate on the revival of nuclear power (see this column on yesterday), other developments in the energy dossiers concern EU relations with third countries and the problem of unbundling. Here is a reminder of these developments.
1. Russia commits, but on its own terms. We're all familiar with the Putin style: a mixture of warnings and promises, arrogance and cordiality. The executives at Gazprom have learnt from his method: encouraging in tone, firm in their conditions. Aleksandr Medvedev, the vice-president of the Russian giant and its director general for exports, took advantage of his participation in the World Energy Forum in Rome to be reassuring about the future: Gazprom is in favour of stable gas prices, without any speculative movements; it will guarantee the provisions to which it has already committed, and even more if EU clients demand it in good time; it assures us that, at least for the next 20 years, there are sufficient resources to satisfy internal demand, respect contracts and the new commitments made with China, Korea, Canada and the USA (the appropriate investments are ongoing). In exchange, Gazprom intends to increase its provisions to end-users in the EU; it has proved in Germany and the UK that it can do it, and it will do the same in Italy and elsewhere, using transparent competition. This implies that its dual activity - production and transport/distribution - will not be contested. This clearly signifies that Gazprom rejects the separation of the two, whereas for the European Commission, if unbundling becomes the rule in the EU, it must also be respected by enterprises from third countries which are active in the EU (this column explained that aspect at the end of September, see our bulletin 9512). Gazprom is trying to take an amiable and constructive tone: it is open to discussion with Brussels. But at the same time indicating that it will present its evaluation of the repercussions that the Commission's position (any purchaser of energy infrastructures in the EU must respect the separation requirement which will be introduced for European companies) will have on the security of supply, the competitiveness of the European market and energy prices in Europe.
2. Algeria follows the Russian example. The Algerian energy minister, Chakib Khelil, has demanded that the EU open up the possibility for the national company Sonatrach to supply its gas directly to European end-users. This would be made possible by the Algeria-Sardinia gas pipeline, the construction of which is already decided. Sonatrach could sell 3 billion cubic metres of gas directly to Italian customers each year, which corresponds to 3% of Italian consumption, while Sonatrach gas sales to Italy cover 30% of its consumption of natural gas.
3. Search for a compromise on unbundling. France has confirmed, through its secretary of state for European affairs, Jean-Pierre Jouyet, that it will reject the Commission proposal on this subject (see this column in our bulletin 9543). It is up to the Council and the European Parliament to sort the issue out. In fact, reflections are already underway on compromise options: for example, separating production and distribution for electricity, but excluding gas, and targeting management, not ownership (an option which the Commission has already acknowledged, albeit unenthusiastically).
The Council will not pronounce on the matter until the second half of next year, there is already much discussion of it among the member states in favour in principle of unbundling (UK, Spain, Netherlands, Belgium, Sweden, Denmark, Ireland) and those opposed to it (the majority of the others). Other compromise possibilities are being looked at, but it is too early to discuss them officially. The major companies such as ENI (Italy), Electricité de France, Gaz de France, etc. remain fiercely opposed to unbundling.
4. The nuclear power plant production industry is demanding that a “European certification authority” be created to authorise new plants, as repeating the authorisation process for the same model in each member state is a massive waste of time (years are sometimes needed to repeat the operation for each project) at unjustified cost.
Elsewhere, the major European electricity producers (EDF, Iberdrola, Electrabel, etc) are investing more and more in wind power in the belief that in 15 or 20 years' time this method of energy production will be profitable without subsidies. The automobile industry however remains very divided on the appropriate initiatives for reducing CO2 emissions from cars. (F.R.)