Brussels, 09/06/2008 (Agence Europe) - As previously announced (EUROPE 9677), after intense discussions, the Energy Council on 6 June in Luxembourg managed to obtain a compromise on the 3rd legislative package on liberalisation of the internal electricity and gas market (EUROPE 9505). Energy ministers agreed on the basis of a compromise elaborated by the Slovenian presidency and obtained a general orientation for their position to defend when discussing the 3rd package with MEPs. Consensus was reached on the thorny question of effective unbundling of production and supply activities and the question of network and transport for energy operators. The EU27 reached a compromise on the modalities for an alternative to ownership unbundling, advocated by the Commission, and already practised in 11 member states for electricity and in 7 for gas. This alternative option consists of an independent Transmission System Operators (TSO) system.
According to the terms of the compromise, member states that want to can opt for the most radical method and those wishing to maintain networks within the reach of the traditional operators will not be compelled to unbundle their vertically integrated enterprises and will be able to choose a less radical reorganisation option. The TSO option is expected to be proposed for two sectors, gas and electricity, for member states in which the transport network (high tension lines or gas pipelines) belongs to a company that is vertically integrated. Proportionate provisions on the independent TSO will be included in the directives to guarantee effective TSO independence in its management and monitoring body, as well as adequate access to financial resources and to ensure that it does not share plant or resources or its social identity with the parent company and thus avoids any conflict of interest.
Based on the strong powers of national regulators being able to guarantee competition, the TSO option aims to ensure independence of the TSO and their increased surveillance but without totally cutting them off from their parent company. These conditions will have to be respected to ensure equal and non-discriminatory access to networks, effective regulation, appropriate investment and inter-connection infrastructure development. Network operators will be separate in a transport subsidiary that is subject to precise operational rules. Parent company management personnel will not be able to be taken on for a period of three years, for example
TSO independence was considerably strengthened during the 6 June discussions. The compromise text also introduces a revision clause two years after the entry into force of future directives, or in four years time at least). Up to this date, the TSO operational model will be meticulously scrutinised on the basis of competition and energy transport infrastructure development criteria. If necessary, the Commission will put new proposals on the table.
The general orientation was not obtained without clashes, because Germany and Austria opposed the compromise on TSO certification procedure and the remit of the Agency Regulators. Backed up by an agreement on effective unbundling and an agreement by qualified majority in 18 member states on the overall compromise, the Slovenian presidency managed to reach a decision. It will now be up to the European Parliament to reach a verdict on the “electricity” directive in a first reading on 17 June and on 8 July for the “gas” directive. (E.H./transl. rh)