Press Release

10/07/2007

Strasbourg: European Parliament calls for more legislative measures to build up a common energy market. Alejo Vidal-Quadras MEP

The European Parliament approved today a report tabled by Alejo Vidal-Quadras MEP on the prospects for the internal gas and electricity market, which call for more legislative measures to build up a real common market in energy supply as, despite the efforts made towards the liberalisation of this market, many obstacles remain.

A large majority of the plenary supported the idea that the most efficient measure to take is unbundling the ownership of companies that produce and transmit electricity and gas. "Even if this measure is not considered as the magic tool which will resolve all of the problems, it will be the best one to promote investment in infrastructure in a non-discriminatory way, fair access to the grid for new entrants and transparency in the market", Vidal-Quadras explained.

The report also calls for more coordination and cooperation between national regulators since the existence of 27 different rules - one for each country - is a serious obstacle to the internal market in energy. The European Parliament proposes a harmonisation of the competences of all the national regulators and especially a reinforcement of their independence, to avoid excessive intervention of governments, as was the case in Spain during the takeover bids of Endesa, the main electricity operator.

The Parliament criticises both the move of some Governments to create "national energy champions", regarding this as a protectionist measure against the creation of a real internal market, and the public ownership of energy companies, which makes the functioning of the market subject to political decisions taken by the governments and is therefore contrary to free competition.

The report also demands to put an end to regulated tariffs as these are used by some countries against the arrival of new operators in their national markets, and they are a false signal to consumers: "We are in a period where we need to optimise the use of energy and citizens need a radical change of attitude in their consuming habits, which requires that they know the real costs of energy", Vidal-Quadras explained.

Vidal-Quadras expects the European Commission to take into account the Parliament's proposals for the new legislative package to liberalise energy markets, which are due to be presented next September. In the meantime, he asked the Commission to act firmly against those countries which are not yet implementing the first package of liberalisation directives approved in 2003 "as these were enough to create a free competition market and to reach the internal energy market."

For further information:
Alejo Vidal-Quadras MEP, Tel: +33-3-88-175322
Pedro López de Pablo, EPP-ED Press Service, Tel: +32-475-493352

Notes to Editors:
The EPP-ED Group is the largest political group in the European Parliament with 278 Members from all 27 Member States.