Liberalization of energy markets proceeds to second reading09/04/09 / cata_european-union-news

One of the first sessions held by the Czech presidency was the session of the Transport, Telecommunications and Energy Council during which the joint position to the energy liberalization package was approved. As expected, the Council did not endorse most of the draft amendments by the European Parliament which were adopted in the first reading held last year. Unbundling or separation of electricity generation from transmission systems continues to be one of the most controversial issues, having impact on all gas producers and electricity generators in the EU. 

The Council sets forth three options for unbundling that vary in the degree of separation within the redrafted texts of the directives. The energy ministers prefer, and are trying to pass, the most moderate option and also emphasize the need for transparency in the legislation to be adopted and elimination of any discrimination whatsoever. However, the European Parliament insisted on complete ownership unbundling in the first reading.

The so-called Gazprom clause constitutes yet another controversial issue regarding the approach to be adopted towards non-EU countries seeking to enter the European energy market. The ministers agreed on a certification system that will fall within the powers of individual EU Member States and their regulating authorities. The Commission originally proposed entrusting these major powers to the Agency for the Cooperation of Energy Regulators (ACER) or, as the case may, in retaining them, and the Parliament agreed to this scenario.

The proposal to establish the ACER as a supranational regulator is subject to controversies mostly in terms of the scope of the powers thereof and the method of distributing voting rights among the Member States. The Council’s joint position is based on equal distribution in which each EU Member State has one vote regardless of its size.

The liberalisation of the energy sector is scheduled to be on the agenda of the May session of the European Parliament, but considering the ongoing controversies the current version of the energy package can hardly be expected to pass in the second reading.