Commission to protect energy supply with actions against protectionist Member States
EU Energy Commissioner Andris Piebalgs has confirmed that proceedings will commence against EU Member States that are not taking steps to liberalise their energy markets. Securing energy supply has been one of the EU's main priorities since the start of the year when an energy dispute between Russia and Ukraine highlighted the EU's reliance on Russian gas imports. The incident has led to a new emphasis on the importance of research into alternative energy sources, and now new trends in economic nationalism across the EU. An EU energy policy was first mooted at the Hampton Court summit in late 2005, but there was little movement until Christmas 2005, when energy shot up the agenda after the Russia-Ukraine energy spat. Russia supplies the EU with 35 per cent of its gas, and that figure is increasing. When the Russian pipeline through Ukraine was cut over the festive season, supplies dropped in Central and Southern Europe. Since then, calls for an EU-wide energy policy have grown louder and louder, with the Austrian Chancellor calling for such a move in late January, and renewed calls from the UK and German Prime Ministers in February, and more recently the UK Chancellor of the Exchequer in his budget speech at the end of March. The Commission's proposal for a common energy policy, presented at the European Council in late March, was warmly supported by Europe's Heads of State and Government. Commission President José Manuel Barroso said in early March: 'We are in a new energy century. Demand is rising. Europe's reserves are declining. There is under-investment and our climate is changing. We must have an approach to match this new reality - the EU can no longer afford 25 different and uncoordinated energy policies.' Up to 50 cases will be launched against Member States that are not running open energy markets. Observers have watched with interest as the French government has blocked a potential takeover of energy firm Suez by an Italian company, Enel, by bringing about a pre-emptive merger with Gaz de France; and the Spanish government has tried to prevent German firm E.On from taking over its electricity group Endesa. 'At this stage, only two countries have a clean bill of health - Denmark and the Netherlands,' Commissioner Piebalgs told the BBC. 'For all other countries we are looking at legislation or there are some issues that need to be resolved. The only thing I can do is to look at legislation and that it is implemented, as the Member States themselves agreed on it. For the EU Commission, there is one way to go - infringement proceedings. Infringement proceedings are very effective, and can go to the European Court of Justice. Nobody will be able to get away with something that is against the law. There will be no excuses,' he said. Although the deadline for implementing the energy liberalisation policies is not until July 2007, the Commission feels that it is important to act now in order to ensure that these deadlines are met. By 2007, Member States will have been preparing for market liberalisation for close to ten years. The Commission has launched a public consultation to look at proposals, contained within the energy Green Paper. The paper proposes, amongst other things, an integrated European electricity grid, cutting energy use by 20 per cent, the setting-up of an EU energy regulator, and ultimately, 'A framework for different low carbon energies to develop. For some that means wind power, some solar power, for others clean coal and it's true that some Member States are considering the further development of nuclear power,' said Mr Barroso at the launch of the green paper.