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Europe Daily Bulletin No. 9868
Contents Publication in full By article 17 / 34
GENERAL NEWS / (eu) ep/energy

Parliament gives up ownership unbundling as only solution to ensure agreement on 3rd liberalisation package

Strasbourg, 24/03/2009 (Agence Europe) - On the sidelines of the European Parliament plenary session in Strasbourg, the five rapporteurs on the 3rd legislative package for liberalisation of the internal market for electricity and gas reached an informal compromise with the Czech Presidency late during the evening of 23 March during a final Parliament/Council/Commission trilogue. The five rapporteurs were: Eluned Morgan (PES, UK) for the directive on electricity, Romano Maria La Russa (UEN, Italy) for the directive on gas, Alejo Vidal-Quadras (EPP-ED, Spain) for the electricity regulation, Atanas Paparizov (PES, Bulgaria) for the gas regulation, and Giles Chichester (EPP-ED, UK) for the regulation on the agency for regulatory cooperation. Discussions in second reading became bogged down at the beginning of the year, mainly stumbling against the thorny issue of ownership unbundling.

The Parliament reached a compromise by coming into line with the political agreement of the Energy Council of October 2008. It now agrees to leave member states the possibility to choose between three options of effective unbundling of production/transport activities, ownership unbundling, independent system operator (ISO) and independent transmission operator (ITO), for the electricity sector as well as for the gas sector. The Parliament, however, obtained additional provisions for the third option ensuring independence of the transport operator when it comes to investment and governance. Vertically integrated companies providing or producing energy may sell or hire out their transport networks (gas pipelines and high voltage lines), and may thus escape ownership unbundling, that the Commission advocates, by restricting transport activity to a subsidiary subject to strict independence criteria. We recall that, at first reading, the Parliament had taken a stance in favour of ownership unbundling for the electricity sector and for a more flexible solution in the gas sector.

The Parliament has obtained additional provisions to ensure greater independence of national regulators. It has also managed to have consumers' rights strengthened. Consumers will have the possibility to change electricity/gas providers in 3 weeks and without cost, to resort to mechanisms to ensure that complaints filed are treated effectively (energy ombudsman) and to compensation mechanisms if the level of quality of the service is deficient. They will also benefit from better information on their rights. The Commission will be publishing practical information relating to these rights. Finally, by 2020, 80% of consumers are expected to have a “smart metre” fitted for calculating energy consumption.

The Parliament also managed to have provisions stipulating that member states must ensure universal service available to all household customers and, where necessary, to SMEs employing under 50 staff. These customers will be entitled to electricity supplies of a specific quality at reasonable prices, easily and clearly comparable, transparent and not discriminatory. Member states should also take appropriate measures against energy poverty, via national action plans or social allocations ensuring necessary energy provision to the most disadvantaged customers.

The compromise reached - which at this stage is only informal - is due to be endorsed on 27 March by Coreper and then on 31 March by the European Parliament's energy committee before a final vote in plenary session on 21-24 April in Strasbourg. (E.H./transl.jl)

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