EU launches energy crackdown

The EU has warned gas and electricity suppliers they face a new antitrust clean-up.

EU competition commissioner Neelie Kroes said Brussels policy would force industries to open up to competition on Thursday.

"In the coming weeks and months the commission will launch individual antitrust investigations," Kroes declared.

"We are just at the beginning of a period of more intensive anti-trust enforcement," she added.

Presenting the findings of a report on the energy sectors of member states, the EU warned monopolies dominating gas markets that they would be targeted.

"I can only encourage everyone to take a close look at their practices. Prevention is always better than cure," she insisted. 

The EU began liberalisation of its energy markets over six years ago. But in many countries former monopolies still rule and newcomers find it hard to gain access to the market.

Kroes said the EU executive will investigate natural gas suppliers who have held onto long term contracts over pipelines.

In Germany newer suppliers say they cannot access pipes that feed gas from Russia to Europe.

In France the energy sector is run chiefly by Electricité de France and Gaz de France.

The European Chemical Industry Council (Cefic) attacked the commission’s “deficient” liberalisation plans saying they threaten the EU chemical industry's competitiveness.

“In order to retain its competitiveness, the EU chemical industry calls for more stringent market liberalisation measures,” Cefic said in a statement.

"True competition between energy suppliers and a fair, transparent price formation are still lacking. Making energy markets really work is crucial to our competitiveness and thus to sustainable jobs.”

British energy supplier Centrica warned the EU proposals could come too late for UK consumers.  

"We welcome the commission's 'get tough' approach with those who are dragging their heels on implementing EU competition directives," Centrica said.

"But change will come far too late to help millions of UK households whose gas and power bills are rising very sharply."

British suppliers have blamed the recent sharp rises in the price of gas to UK consumers on the high cost of gas being shipped in from Europe.

The commission is also working on a green paper to map out a common EU energy policy.

The paper, due in March, will address  relations with energy suppliers such as Russia and gaps in Europe’s cross-border energy systems.

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