Mixed response to EU parliament vote on energy package

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By Martin Banks
- 22nd April 2009
BEUC fears these rights will remain theoretical rights

Monique Goyens

Leading consumers' organisation BEUC has given a lukewarm reaction to new laws designed to open up energy markets in Europe.

MEPs meeting in Strasbourg adopted the so-called 'third energy package' which relates to electricity and gas markets as well as access to the networks.

The package aims to create a competitive internal energy market by giving European consumers a better choice between different companies supplying gas and electricity at reasonable prices and by making the market accessible for all suppliers.

It also paves the way for the establishment of an agency that will supervise functioning of the energy market.

Monique Goyens, director general of the European consumers' organisation (BEUC), was less than impressed, saying parliament had "missed its chance" to advance competition in Europe’s energy markets.

She said, "On the positive side, the regulators have been made more powerful and consumer rights have been improved in a number of areas, such as the right to switch energy suppliers within three weeks, the right to a single point of contact for information and redress and specific measures for energy poverty and vulnerable consumers.

"Overall, however BEUC, fears these rights will remain theoretical rights only as compulsory ownership unbundling was not accepted in the vote.

"Without full ownership unbundling, the development of competition in this sector will not be achieved as it is essential to ensure open access to the markets for newcomers."

She added, “Even if the new energy package consequently offers more rights to consumers, these rights cannot be ensured without real competition and in particular without full ownership unbundling.

"We call on the commission and member states to move towards full ownership unbundling. In the meantime, member states should at least ensure that their national regulators are as powerful as the companies they need to police."

However, French ALDE deputy Anne Laperrouze, a deputy chair of parliament's industry and energy committee, welcomed the outcome of Wednesday's vote in Strasbourg.

She said, "To summarise this third package as only about ownership unbundling would be an error.

"The projections are real: more capacities to the regulators, more rights for the consumers, more transparency to facilitate the development of renewable energies and more technical collaboration between network operators."

"Supply security, the climate change challenge, the continuation of the liberalisation of the markets to guarantee reasonable and stable prices to industry and consumers must be continued with a pragmatic and non dogmatic approach."

Further comment came from Lithuanian ALDE member Sarunas Birutis who said, "Member states strongly opposed parliament's position to have full ownership unbundling in the electricity sector, but we reached a compromise to strengthen the powers of national regulators."

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