The European Union's executive body, the European Commission, has announced reform proposals aimed at increasing competition in Europe's energy markets. It aims to break up firms which control both the production and the delivery of energy.
European Union commission chief Jose Manuel Barroso said the current situation distorts competition and harms comsumers. The reform is one of the most controversial proposals to come out of Brussels in years. Implementation is not likely to come for years, as it requires the approval of all European Union member states.
Via| DW News
European Union outlines plans to open energy market
The European Commission has unveiled radical plans to break up Europe's energy giants to open the gas and electricity markets to greater competition while also placing strict curbs on foreign ownership of power assets across the Continent to secure supply.
The continental energy giants E.ON and Électricité de France will come under pressure to separate structurally or sell off their transmission networks from power-generating facilities if the European Parliament votes in favour of the proposals.
The commission said if Europe's power giants refuse to sell their networks, they will be forced to hive off those operations into an independent company under different management, a system similar to that used to separate BT's network from its retail operations in the UK telecoms market to stimulate competition.
The situation was welcomed by Centrica, which trades under the British Gas brand, that was itself split off from its transmission network in the 1990s. Sam Laidlaw, the chief executive of Centrica, said: "The proposals are welcome and are an important step in providing more competitive energy markets for the benefit of Europe's energy customers." He described the European energy market as a "closed shop" and said the proposals would deliver better supply security but added that regulation of the independent service operators in charge of the networks would have to be "watertight".
John Mogg, the chairman of the UK regulator Ofgem, said the proposals, if enacted effectively, would put downward pressure on energy prices.
The commission has also proposed limitations on foreign ownership of European power assets, a move likely to antagonise Russian energy giants looking to snap up smaller rivals. Alexander Shokhin, the head of the Russian Union of Industrialists and Entrepreneurs, said: "Such limits ... could lead to serious damage for Russian companies that have long-term contracts with European consumers."
Via| The Independient | by Nic Fildes
Energy Giants
Europe's energy industry is to undergo a major shake-up according to proposals adopted by the European Union's executive, the European Commission. The changes, which could be imposed on the bloc's dominant energy giants, are designed to lead to cheaper energy prices via increased competition.
Commission President Jose Manuel Barroso said: "I believe that it is time to end energy prices by postcodes. If you look at the results of our investigation, then it shows the differences and how much the markets in Europe are now effectively protected. You find very, very astonishing results. That confirms that the current situation cannot stay as it is".
The proposals mean that businesses which generate power will have to separate from their distribution networks, but this won't be a chance for foreign companies to buy up European pipelines. "We need to place tough conditions on ownership of assets by non-European companies to make sure that we all play by the same rules. It is very important," said Barroso.
But, to get agreement, the Commission is offering European Union states the choice of whether to force a sell-off of the distribution sectors or merely to hand over control to an independent operator.
Via| EuroNewsEuropean Union commission chief Jose Manuel Barroso said the current situation distorts competition and harms comsumers. The reform is one of the most controversial proposals to come out of Brussels in years. Implementation is not likely to come for years, as it requires the approval of all European Union member states.
Via| DW News
European Union outlines plans to open energy market
The European Commission has unveiled radical plans to break up Europe's energy giants to open the gas and electricity markets to greater competition while also placing strict curbs on foreign ownership of power assets across the Continent to secure supply.
The continental energy giants E.ON and Électricité de France will come under pressure to separate structurally or sell off their transmission networks from power-generating facilities if the European Parliament votes in favour of the proposals.
The commission said if Europe's power giants refuse to sell their networks, they will be forced to hive off those operations into an independent company under different management, a system similar to that used to separate BT's network from its retail operations in the UK telecoms market to stimulate competition.
The situation was welcomed by Centrica, which trades under the British Gas brand, that was itself split off from its transmission network in the 1990s. Sam Laidlaw, the chief executive of Centrica, said: "The proposals are welcome and are an important step in providing more competitive energy markets for the benefit of Europe's energy customers." He described the European energy market as a "closed shop" and said the proposals would deliver better supply security but added that regulation of the independent service operators in charge of the networks would have to be "watertight".
John Mogg, the chairman of the UK regulator Ofgem, said the proposals, if enacted effectively, would put downward pressure on energy prices.
The commission has also proposed limitations on foreign ownership of European power assets, a move likely to antagonise Russian energy giants looking to snap up smaller rivals. Alexander Shokhin, the head of the Russian Union of Industrialists and Entrepreneurs, said: "Such limits ... could lead to serious damage for Russian companies that have long-term contracts with European consumers."
Via| The Independient | by Nic Fildes
Energy Giants
Europe's energy industry is to undergo a major shake-up according to proposals adopted by the European Union's executive, the European Commission. The changes, which could be imposed on the bloc's dominant energy giants, are designed to lead to cheaper energy prices via increased competition.
Commission President Jose Manuel Barroso said: "I believe that it is time to end energy prices by postcodes. If you look at the results of our investigation, then it shows the differences and how much the markets in Europe are now effectively protected. You find very, very astonishing results. That confirms that the current situation cannot stay as it is".
The proposals mean that businesses which generate power will have to separate from their distribution networks, but this won't be a chance for foreign companies to buy up European pipelines. "We need to place tough conditions on ownership of assets by non-European companies to make sure that we all play by the same rules. It is very important," said Barroso.
But, to get agreement, the Commission is offering European Union states the choice of whether to force a sell-off of the distribution sectors or merely to hand over control to an independent operator.
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