The government's hopes for an ambitious EU plan to break up huge continental energy groups and drive down electricity and gas prices will receive a setback on Thursday when ministers plan to water down the European commission's proposals for a radical shake-up of the market.
Energy ministers from the EU's 27 member states are also set to reject binding targets for renewables to provide 20% of Europe's energy supply and for energy savings of 20% to reduce dependence on foreign imports, according to draft conclusions of Thursday's council meeting.
France and Germany, backed by some eastern European states, are opposing commission plans to "unbundle" dominant energy groups by forcing them to sell off their power and gas transmission networks and allow rivals to enter a more competitive market.
France also opposes alternative proposals to hand over management of these networks to an independent systems operator.
Britain, backed by UK groups such as Centrica, the owner of British Gas, strongly backs the stance taken by Brussels and, according to Claude Turmes, a Green MEP, is supported by the Nordic countries, the Netherlands, Belgium, Italy and Spain.
Mr Turmes says France and Germany, the current EU president, are crudely defending the interests of big groups such as EDF, Eon and RWE.
Energy ministers from the EU's 27 member states are also set to reject binding targets for renewables to provide 20% of Europe's energy supply and for energy savings of 20% to reduce dependence on foreign imports, according to draft conclusions of Thursday's council meeting.
France and Germany, backed by some eastern European states, are opposing commission plans to "unbundle" dominant energy groups by forcing them to sell off their power and gas transmission networks and allow rivals to enter a more competitive market.
France also opposes alternative proposals to hand over management of these networks to an independent systems operator.
Britain, backed by UK groups such as Centrica, the owner of British Gas, strongly backs the stance taken by Brussels and, according to Claude Turmes, a Green MEP, is supported by the Nordic countries, the Netherlands, Belgium, Italy and Spain.
Mr Turmes says France and Germany, the current EU president, are crudely defending the interests of big groups such as EDF, Eon and RWE.
French model
François Loos, French industry minister, has proposed a "third way" under which an independent regulator would set prices for access to energy grids and assess investment decisions.
This is his own country's model, where the grid is owned by the state-controlled EDF. Mr Loos claims this alone will guarantee the necessary investment.
But Mr Turmes said the French proposal was designed to ensure a quasi-monopoly for EDF at home and to play the monopoly game abroad.
He also claimed that the recent introduction of regulated prices for big industrial consumers had reduced the liquidity of the French power exchange.
The issue is due to be decided by EU heads of government at their spring summit early next month but the draft conclusions make clear that both France and Germany would prefer to see it put off to a meeting of energy ministers in June.
Ministers are also being urged to leave a decision on a binding renewables target to later this year, although more countries now favour the mandatory 20% target by 2020.
They are also set to weaken the commission's proposal for a 20% target for cutting energy consumption to merely a "potential" goal.
This is his own country's model, where the grid is owned by the state-controlled EDF. Mr Loos claims this alone will guarantee the necessary investment.
But Mr Turmes said the French proposal was designed to ensure a quasi-monopoly for EDF at home and to play the monopoly game abroad.
He also claimed that the recent introduction of regulated prices for big industrial consumers had reduced the liquidity of the French power exchange.
The issue is due to be decided by EU heads of government at their spring summit early next month but the draft conclusions make clear that both France and Germany would prefer to see it put off to a meeting of energy ministers in June.
Ministers are also being urged to leave a decision on a binding renewables target to later this year, although more countries now favour the mandatory 20% target by 2020.
They are also set to weaken the commission's proposal for a 20% target for cutting energy consumption to merely a "potential" goal.
Source: The Guardian
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