European Energy Community: A single market based on “three pillars”

The European Union has to speed up the implementation of the joint regulations in the energy sector. The energy policy should be based on “three pillars”: competitiveness, energy supply security and sustainability.

In June 2010, work group representatives presented the reports related to energy security, the single energy market and renewable energy sources. European deputy Jacek Saryusz-Wolski (PPE, Poland) concluded the works on energy security as follows: the implementation should be speeded up with the help of a stronger political will from all EU member states; the single energy market cannot be efficient in the absence of energy security; a financial compensation at European level is necessary in order to encourage investments in the energy sector. Spanish senator Felix Lavilla Martinez outlined the need to achieve complete interconnection, as a prerequisite for the creation of the single market. Only this way energy prices can be lowered, thus having a positive impact on the consumers. Higher energy efficiency would improve competitiveness, while energy suppliers could redirect their investments towards the development of alternative energy sources. During his final speech, European Parliament President Jerzy Buzek said that the introduction of renewable energy sources should be the main priority of the future European energy policy, which would improve competitiveness among European companies. He confirmed the matter of the legal basis of the future European Energy Community, a field in which cooperation would be the best solution, but talks have just been initiated. Joaquin Almunia, EC Vice-President, expressed his support for the “three-pillar system”, reminding participants that energy should be affordable for the industry and consumers alike. According to the Vice-President, the single energy market cannot be built in one day. That is why the current priority has to focus on regional cooperation within the UE. In the end, Almunia said that the national and international parliamentary dialogue should become “the rule, not the exception, because dialogue is part of the solution”.

20 EU member states will adopt the regulations ofthe Single Energy Market

On June 24, 2010, the European Commission decided to send out 35 separate requests to 20 member states, demanding the complete transposition and implementation of various aspects of the European legislation related to the creation of the single energy and gas market. These regulations focus on consolidating the capacity and transparency of the energy and gas markets. In two months’ time, these member states have to meet these requirements which, in case of the violation of EU rights, will act as “reasoned opinions”. In case the response is not satisfactory, the Commission can present the cases to the European Court of Justice. The 20 member states in question are: Austria, Belgium, Bulgaria, Czech Republic, Germany, Spain, France, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Sweden and the UK. The main violations refer to the inability of the energy and gas distribution operators to provide information, thus preventing the suppliers’ access to the networks; the network capacity allocation systems do not correspond to the standards set out and thus the energy and gas distribution networks in the respective member states are not used in the best conditions. The Commission also believes that there is no coordination and cross-border cooperation between energy operators and national authorities. This aspect is very important for the improvement of the network capacity allocation at cross-border points, so that the existing energy network can best respond to the regional and European needs.

by Elena Ilie


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