MEPs back EU commission energy 'unbundling' plan

MEPs have branded a French attack on the European commission’s energy ‘unbundling’ proposals as 'blatant protectionism'.

In a leaked document, France warns that the commission measure to separate energy production from distribution networks would harm Europe’s energy interests.

The document has been circulated to EU officials as they prepare for a key energy council meeting in Brussels on 15 February.

French industry minister Francois Loos said he disputes the commission’s view that competition can only be ensured if the grip of monopoly producers on national power grids is broken.

In an interview with the Financial Times, Loos said, “If there was an independent owner or operator of the grid, I’m not sure that would guarantee investment.”

At next week's meeting, Loos is expected to propose a system of “regulated unbundling”, in which an independent regulator sets prices for access to energy grids.

But his comments were dismissed by cross-party members of the European parliament’s internal market committee.

Its chairperson, UK Socialist deputy Arlene McCarthy, called on the commission to “robustly resist” any attempts by the French and others, such as Germany which has also raised concerns about the commission plan, to shelve its "unbundling" proposals.

"France is very good at talking the talking on Europe but is all too often found wanting when it comes to delivery, not least on the internal market," she said.

"We want a more efficient energy market in the EU and the commission’s proposals will go someway to achieving this."

"I don’t mind if the French state-controlled monopoly EDF supplies electricity in the UK but we, and others, must have open access to the French market," she added.

"I hope the commission will be very robust with those countries, such as France, which oppose these proposals and are resisting attempts to the open their energy markets."

Her remarks were echoed by committee deputy chairman, Finnish EPP deputy Alex Stubb.

"The French position on this issue is absolute rubbish," he said.

"Opposing the commission’s unbundling proposals might damage energy monopolies in France but will certainly not damage the EU’s strategic energy interests, as has been suggested by Loos."

"If I was representing the interests of EDF I daresay I would take the same position."

"But this strikes me as another example of blatant French protectionism."

Most think it unlikely EU members will reach agreement on the issue in time for the next European summit in March -though it is still hoped a deal can be brokered at a second meeting in June.

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