Whilst the keynotes in 2006 were uncertainty and lack of real progress in liberalisation, 2007 was marked by two quite different attitudes. On the one hand, countries that believe in the single market even though it carries a risk of their companies losing share and power, and on the other, countries that place the defence of their companies before the goal of a competitive and non-discriminatory market in Europe.
In this atmosphere of some euphoria over the success and consensus achieved with the presentation of these medium and long term objectives, a new regulatory framework was prepared.
The European Commission presented the third legislative package on the subject of energy on 19 September. The objective is to “create a real internal energy market”.
This package contains proposals designed to ensure a real and effective opportunity to choose a supplier and to offer advantages for every European citizen. Fairer prices, less contaminating energies, security of supply and sustainability (by increasing energy efficiency) are the objectives which would be achieved if this third legislative package is implemented.
These measures had already been announced in the communication An energy policy for Europe, approved by the European Council in March 2007.
The Commission is proposing several measures to complement current regulations:
- Separation of the transmission and the production/supply networks.
- Establishment of measures to guarantee that companies in third countries will observe the same requirements of disassociation as Community companies.
- Easing of cross-border energy trading.
- Making the national regulatory authorities more effective.
- Promotion of cross-border collaboration and investment.
- Greater transparency.
- Greater solidarity.
Finally, the measures listed are contained in the following legislative proposals, which must be analysed by the Parliament and the Council for final adoption, if there is agreement. These are:
- Draft Directive to modify Directive 2003/55/EC concerning common rules for the internal natural gas market.
- Draft Regulation to create an Agency for cooperation between the energy sector regulators.
- Draft Regulation concerning the conditions for access to the natural gas transport networks.
- Commission working document to evaluate the impact of the third legislative package.
These Commission initiatives (which might possibly become a third Directive) are taking place in a year in which the deadline for complete freedom of choice of gas and electricity suppliers was set at 1 July, with the exception of the Baltic States and others where gas has been introduced recently.
However, there have been accusations of “asymmetry and unfair competition in certain European markets”, made, for example, by some Spanish industrialists. These situations are caused by the difficulty in providing equal opportunity of participation to all the companies involved in the market, whether owned privately or by an ‘incumbent’ with public capital.
At the time of writing, a search is on for an alternative to the Commission’s proposal to separate ownership of the transport networks from supply activities, or, as an alternative, the segregation of management (by leasing to a third party) of the transport networks, although this initiative is opposed by France and Germany.
Finally, we include a brief reference to the Commission’s energy proposal of January 2008, which compiles and enlarges the objectives which it had declared previously for 2020:
- Increase energy efficiency by 20%.
- Reduce greenhouse gas emissions by 20%.
- Make renewable sources account for 20% of the energy supply.
- Make plant sources account for 10% of motor vehicle fuel.
Besides these objectives, it presents a number of strategic measures referring, among other things, to renewable energy and emissions rights trading.