EU launches energy crackdown

Seventeen EU countries face legal action for failing to open up their gas or electricity sectors, the European commission said on Tuesday.

Member states have until July 1 to implement EU laws on liberalisation but the commission is growing impatient at the slow pace of reform.

Addressing a Strasbourg press conference on Tuesday, EU energy commissioner Andris Pielbags said virtually all member states have to pull their socks up.

“There has been some reform, but not on a scale I would wish. Member states facing infringement proceedings have failed to secure one of three things. Either market access, transparency in their energy markets or sufficient investment.”

Piebalgs has sent a letter of formal notice - the first action in a full infringement procedure - to Austria, Belgium, the Czech Republic, Germany, Estonia, Spain, Finland, France, Greece, Ireland, Italy, Lithuania, Latvia, Poland, Sweden, Slovakia and the UK.

The barrage of litigation follows controversy over moves by France, Spain and Poland to block takeovers in their energy and financial services sectors.

The EU executive reiterated that it seeks “open, competitive energy markets that enable European companies to compete Europe-wide rather than just being national champions”.

“It is probably easier for me to explain what infringements Spain hasn’t made,” the energy commissioner joked with journalists on Tuesday.

“They face complaints on access to gas and in the electricity on regulation of prices. There have been a lot of complaints.”

France faces accusations of failing to guarantee the independence of gas and electricity suppliers, regulating prices and giving preferential access to certain electricity contracts.

Member states facing legal action now have two months to explain how their national rules are compatible with EU legislation.

If the commission is not satisfied with the answer, it can send them a “reasoned opinion” - a final warning giving two months to comply with EU law or be taken to the highest EU court.

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