Brussels, 05/06/2008 (Agence Europe) - Meeting on 6 June in Luxembourg under the presidency of the Slovenian minister for the economy, Andrej Vizja, the Energy Council will attempt to obtain a general orientation on the 3rd energy market liberalisation package. There will also be another orientation debate on the “energy and climate package” and “renewables” directive.
Internal market - If there is no political agreement or opinion from the European Parliament (co-decision procedure), energy ministers will attempt to obtain a general orientation during the public discussion on the 3rd package of legislative measures for completing rules on the internal electricity and gas market, in an effort to ensure that it works effectively (EUROPE 9505). The EP is soon expected to adopt its opinions in a first reading on the five texts in the package: on 17 June for the draft directive amending the 2003/54/EC directive on common rules for the electricity market, the draft regulation setting up an energy regulators cooperation agency and draft regulations amending regulations 1228/2003 on network access conditions for cross-border trading in electricity and 1775/2005 on gas transport network access conditions; on 8 July for the draft directive amending directive 2003/55/EC on common rules for the gas market.
The Slovenian Presidency will be presenting a compromise proposal that includes a solution on unbundling of production/supply and network/transport activities. The Commission initially proposed two options to this end: ownership unbundling according to which the same company cannot be the owner of a supply network and produce or provide energy, and the designation of an independent system operator (ISO), which would enable vertically integrated companies to maintain network ownership on the condition that the shares are managed by a totally independent body. Work at the Council demonstrated that although a majority of member states and the Commission consider ownership unbundling to be the best solution, some delegations do not agree to any of these options. To break the deadlock, the Commission and Slovenian Presidency presented a joint official document proposing a third way, the ITO or independent transport operator option. This means that in view of effective unbundling, independent transport network management bodies will be set up. This option would allow companies to maintain transport network ownership on the condition that they are managed by an independent transport network management body and that additional conditions are respected to ensure equal and non-discriminatory network access, effective regulation, investment, inter-connecting infrastructure development and non-distorting investment promotion measures (EUROPE 9665). The Presidency's final compromise is based on these three options for obtaining effective unbundling and will include other essential elements from the package (minority stakes, public share ownership, clause on third countries, certification awards for TSO, derogations, adoption of network codes, regulatory remit, regional cooperation, issues involving gas sector and provisions on the Cooperation Agency.
Energy and Climate - In view of completion by the French Presidency of the Council, energy ministers will have another public orientation debate, following that of 28 February (EUROPE 9612) based on a progress report drawn up by the Presidency (doc. 9648/08) for the Energy and Environment Councils. Ministers will focus on the draft directive on promoting and using renewable energies (EUROPE 9586). The progress report highlights the main pending questions for each of the four texts in the package. The renewables directive involves targets (level of national targets, target conditions on renewable fuels for transport and the indicative trajectory and impact), various projects with long term deadlines, exchange systems for guarantees of origin and strengthening measures. Part of the report also focuses on progress towards defining biofuel viability criteria, which will be integrated into the renewables directive and that on fuel quality. Despite progress achieved by the Council's ad hoc group on this dossier, some questions still need to be further examined (level and date of application of the 2nd phase on minimum demands for greenhouse gas emission reductions, environmental and social viability of biofuel production, also third countries and the method for calculating greenhouse gas emission reduction.)
International relations - The Commission and Presidency will inform the Council of events during the first half of 2008. EU/OPEC dialogue will be on the agenda, as well as the international partnership for energy efficiency cooperation and the Energy Community. (E.H.)