Dutch call for France to rethink energy law wins British backing

Date: 06/05/1999

By Peter Chapman and Simon Coss

Dutch Finance Minister Anne-Marie Jorritsma has won British support for her bid to force France to change its approach to electricity market liberalisation.

Jorritsma has so far fought a lone battle against the French proposals, which she claims fall way short of the requirements of the Union's electricity liberalisation directive.

She has warned that the draft French law would mean big companies would not be able to exercise their new right to shop around for the best deals on electricity supplies, because they would be forced to sign energy contracts of at least three years' duration.

Jorritsma has also complained that the draft law, which is set to be approved by the French parliament in the autumn, would require foreign firms anxious to get a foothold in the country's market to set up a base in France.

UK diplomats say Jorritsma will be able to count on British support when the issue is discussed at next Tuesday's (11 May) meeting of EU energy ministers in Brussels.

Like the Dutch, who recently saw Amsterdam-based utility UNA fall into foreign hands, the UK has been quick to open up its energy markets to outside competition. US firms also own many of the country's regional electricity distributors.

" We will encourage all ministers that we need to see this through," said one British official. "It is true there is a particular problem with the French. They occupy an incredibly important position. They are the link for the UK and Iberia."

The official added that a key concern for the UK was 'reciprocity' - the principle that British and other foreign firms should be entitled to the same benefits from energy liberalisation in France as French firms such as Eléctricité de France have gained elsewhere.

Dutch attempts to put pressure on Paris have been undermined by the European Commission's insistence that it can only act once the draft legislation becomes law. But a Dutch diplomat said The Hague was "encouraged" by the wording of a Commission report on the implementation of the electricity liberalisation package by member states which will be unveiled at next week's meeting.

Although the document does not name names, it contains a Commission promise to "take the necessary steps" to ensure member states meet their obligations.

Meanwhile, power and gas workers will gather outside next week's meeting to protest at job cuts which they claim are a direct result of energy liberalisation.

A recent study commissioned by the European Federation of Public Service Unions (EPSU) concluded that by the end of the decade, some half a million jobs will have been lost since moves to liberalise the EU energy sector began in 1990. The EPSU argues this figure is far higher than original Commission estimates.

" Commission arrogance has left the Energy Council as the only decision-makers who can bring some balance and fair play. They must take action or assume the responsibility for ignoring energy workers," said EPSU general secretary Carola Fischbach-Pyttel.