Expert group calls for long-term energy strategy

By Emily Smith

Date: 01/06/06

Europe urgently needs to agree a long-term energy market vision after months of uncertainty, according to a report to be adopted by a Commission-led experts' group on Friday (2 June).

The high-level group (HLG) on competitiveness, energy and the environment was launched by Enterprise Commissioner Günter Verheugen in February to advise the Commission on the challenges of a changing EU energy market.

Its first report is to say that member states must agree where they are going. "The EU and member states should provide a long-term vision related to the regulatory environment, key environmental and energy mix choices to reduce uncertainty, " says the draft report.

The EU was faced with many energy challenges in 2005 and 2006, from fears over the stability of Russian gas supplies to the launch of CO2 emissions trading for industry.

The draft report asks the Commission to help companies and governments understand when supply contracts breach EU competition law. Guidance on the appropriateness of long-term partnerships is particularly important when these are needed for security of supply, to help create new capacity, or only affect a small market sector, says the draft.

It recommends publishing guidelines within 12 months.

EU-wide minimum transparency standards are also needed for energy mergers and competition inquiries, even where this could mean altering national legislation.

The report stresses the importance of setting up fully functioning regional energy markets by the end of 2007.

Regional initiatives are often seen as a faster, less bureaucratic way of completing a single energy market than legislation from Brussels.

The report is the first of several expected from the HLG before final conclusions emerge in 2007.

The group's work is running in tandem with a debate on establishing a common EU energy market, launched with a Green Paper in March.

A spokesman for the Commission's enterprise department said that the report would be a first step towards sorting out problems with a common energy market.

Article anticipates the adoption of the first report of the European Commission's High-level group (HLG) on Competitiveness, Energy and the Environment on 2 June 2006. The Group was to argue that the EU urgently needed to agree a long-term energy market vision after months of uncertainty. The expert group had been launched by Enterprise Commissioner Günter Verheugen in February to advise the Commission on the challenges of a changing EU energy market.

European Commission: DG Enterprise and Industry: Competitiveness aspects of sustainable development: High-level group (HLG) on Competitiveness, Energy and the Environment http://ec.europa.eu/enterprise/environment/hlg/hlg_en.htm

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