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The European
Parliament adopted the resolution based on the initiative report by Alejo
VIDAL-QUADRAS (EPP-ED, ES) on the prospects for the internal gas and
electricity market. The main themes
dealt with in this report are as follows: Transmission
unbundling: the Parliament considers transmission
ownership unbundling to be the most effective tool to promote investments in
infrastructures in a non-discriminatory way, fair access to the grid for new
entrants and transparency in the market. It underlines however that this
model might not address all of the issues at stake such as interconnections
or congestion points. The Commission is invited to present an analysis in
which the expected costs of ownership unbundling and of establishing
independent system operators for the Member States, the expected effects on
investment in the networks, as well as the benefits for the internal market
and consumers are demonstrated. It should be noted that amendment calling
into question the principle of unbundling was rejected at Plenary by 245
votes for, 406 against and 22 abstentions. It recognises
that the application of further unbundling measures for the gas sector is not
straightforward and therefore urges the development of specific solutions to
enable this sector to achieve the completion of the internal gas market,
taking into account the differences between the upstream and downstream
markets. The Commission
is called upon to come forward with a balanced proposal allowing EU gas
companies to use pipeline investments and long-term contracts in order to
raise their negotiating power vis-à-vis third countries. MEPs insist that no
third country company should be allowed to purchase energy infrastructure unless
there is reciprocity with that country. Regulators: the report welcomes the Commission's proposal to enhance
cooperation between national regulators at EU level, through an EU entity, as
a way to promote a more European approach to regulation on cross-border
issues. According to the report, national regulators should : (a) remain the
only authority responsible for decisions affecting their national market
only; (b) ensure that any company owning energy infrastructure, and in
particular transmission networks or pipelines, undertakes to meet clearly set
down investment targets in order to avoid speculation in this area; (c) be
independent, strong and have well-defined competences in order to ensure the
law is fully implemented in practice and is adhered to by market players and
that the necessary investments and transparency levels are in place; (d) be
given the role of penalising an operator who does not respect their decisions
or a transmission operator who fails to meet his network maintenance obligations,
of ensuring that energy companies have a statutory obligation to give energy
saving advice to customers. Regulated
tariffs: Member States are urged to
gradually end the application of generalised regulated tariffs, whilst
ensuring that there are adequate measures to protect vulnerable customers,
particularly in terms of fuel poverty, including non-market based mechanisms.
MEPs consider that subsidies for non-renewable sources of energy should be
eliminated thereby ensuring a level playing field, that external
environmental costs should be internalised in the price of energy and that
market-based instruments should be used to achieve environmental and energy
policy objectives. The report notes that targeted high-standard universal
service obligations and public service obligations should comply with State
aid rules and that competition law applies with respect to price
discrimination and restrictions on re-sale. Social
impact and consumer protection: the Commission is
invited to present full impact assessments including the evaluation of the
social effects of its different proposals and to support the industries in
developing mechanisms for training and redeployment. It should present
its proposal for an Energy Consumers' Charter by the end of 2007. Interconnections: while welcoming the indicative objective of achieving
interconnection levels of 10% in Member States, the Parliament calls on
Member States to increase their efforts, including through the strengthening
of bilateral cooperation, to remove technical, administrative and political
barriers to the completion of existing and upcoming projects, in particular
the four projects identified by the Commission as projects of EU interest.
Member States are asked to facilitate authorisation procedures for the
building of interconnection lines and to limit the duration of the
procedures. It reaffirms the need to increase the budget allocated to
trans-European energy networks for, in particular, removing environmental
obstacles. Long-term
contracts: MEPs recognises that upstream
long-term contracts, in particular in the gas sector, are necessary to
provide a positive investment climate, contribute significantly to security
of supply and do not harm the integration of the internal energy market,
provided that new entrants are not excluded. They request the Commission to
propose a definition of what constitutes a high energy user and request the
Commission to give special consideration to high energy users in the EU that
are competing in the global economy. The Commission is also asked to provide
clear guidance on downstream bilateral long-term contracts in order to reduce
uncertainty in the market and to move towards standardisation of contracts. Electricity
grid and gas networks: reiterating its concern
over the investment needed to upgrade the electricity grid and gas networks
to ensure the security of supply in EU, the Parliament calls on national,
regional and local authorities to take all necessary steps to ensure that
these delays are reduced to the strict minimum and that every inhabited
remote and inaccessible area (including islands and mountainous areas) is
connected to the main electricity grid. It urges the Member States to
facilitate an increase in grid capacity in order to allow the incorporation of
new massive onshore and offshore renewable energy generation. Lastly, the
Commission is called upon to draw up a road map for the creation of a single
EU electricity and gas network. Strategic
stocks: MEPs agree with the Commission that, in
relation to gas, considering the present technology, it is better to
diversify supply routes and technologies, such as degasification plants and
liquefied natural gas terminals, than to create massive gas stocks. They
invite the Commission to make a concrete proposal for making better use of
existing gas stocks without disturbing the balance between security of supply
and favouring new market entrants. Transparency: the Commission is urged to put forward concrete proposals on how
to enhance transparency for consumers, to make consumer information complete
and clear (including the various tariffs available, the company's energy mix
and other useful information such as labelling as defined in Directive
2003/54/EC), and to strengthen the role of consumer organisations in the EU
energy market. Implementation
of EC legislation: concerned at the number of Member States who are still to
transpose Directives 2003/54/EC and 2003/55/EC and those who have failed to
implement them properly. MEPs call on Member States to transpose and fully
implement these directives without delay. The Commission
is urged to closely supervise the impact of concentration on competition,
both at national and at European level, taking also into consideration the
current consolidation process that is giving rise to new, large,
multinational energy undertakings active in a significant number of Member
States and with a high degree of vertical and gas-electricity integration.
National governments are called upon to stop the promotion of the so-called
national champions and to refrain from passing protectionist legislation
preventing the development of a truly integrated European energy market.
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