EUROGAS RESPONSE TO THE TRANSPORT, TELECOMMUNICATIONS AND ENERGY COUNCIL OF 15.02.07 ON THE “ENERGY PACKAGE”

20 February 2007

Eurogas, the European Union of the Natural Gas Industry wishes to comment on the outcome of the 15 February Council discussion on the Strategic European Energy Review and on the Action Plan for Energy Policy for Europe.

Eurogas welcomes the Council’s conclusions on the achievement of a well functioning internal energy market and security of supply and its invitation to the Commission to elaborate a set of measures that take into account the characteristics of the gas sector and of the national and regional markets. Eurogas will contribute to the future debate.

• Eurogas supports full and timely implementation of existing legislation, regulations and voluntary agreements since these will realize further progress.
• Eurogas agrees on the importance of effective separation of supply and production activities from network operations (unbundling), based on independently run and adequately regulated network operation systems which guarantee equal and open access to transport infrastructures. Solutions should be proportionate to the type and importance of the objective to be addressed.
• Eurogas welcomes the idea of harmonization of powers and the strengthening of the independence of national energy regulators and possible measures to create an independent coordination mechanism for national regulators. This should though refer to well defined issues related to further market integration to facilitate cross-border trade.
• Eurogas supports an increased cooperation between Transmission System Operators.
• Eurogas welcomes the Council’s prudence in calling for additional clarifications and their  impacts and insists on the importance of impact assessment for any future legislative initiatives.

Diversification of transport routes and energy sources are according to Eurogas, of paramount importance for ensuring secure and competitive supplies to Europe. Large investments have to be made, both inside and outside the EU, in production, large-scale import and transit pipelines to bring gas downstream markets. The importance of these investments is also due to the fact that they have a cross border impact requiring a long-term strategic view of the gas business. Eurogas is therefore happy to note the Council’s point on effective diversification of energy sources and transport routes which will contribute to a more competitive internal energy market.

Eurogas agrees with the importance of the international energy dialogues. Eurogas welcomes the Council’s suggestion on the need of assessment of the impact of vertically integrated companies from third countries on the European internal market and on the way to implement the principle of reciprocity.

Eurogas fully endorses the efforts to combat climate change and stresses the key role of natural gas in the future sustainable energy mix and in low carbon energy markets. The energy mix should be determined by the market on the basis of objective, competitive, commercial, technical and sustainable factors.