This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7002700.stm
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
European energy reform approved | European energy reform approved |
(20 minutes later) | |
The EU has adopted plans that would force European energy markets to be open to more competition. | |
Its executive, the European Commission, backed proposals meaning that energy giants must "unbundle" operations. | |
This means that businesses which generate power and supply gas will not also be allowed to control the network of pipelines. | |
Firms will be forced to either sell transmission networks or lease them to new operators. | |
The Commission says that the move will encourage new entrants to the sector as well as boost investment in infrastructure. | The Commission says that the move will encourage new entrants to the sector as well as boost investment in infrastructure. |
The proposals also shield markets from outsiders such as Russia's Gazprom, which supplies about 25% of Europe's gas. | |
If it wanted to enter the market, it too would have to separate its supply and network businesses under the regulations. | |
'Competitive' | 'Competitive' |
The commission's report said that the existing dominance meant that too many EU residents and firms "lack a real choice of supplier". | |
That dominance gave the energy titans "an inherent interest to limit new investment when this will benefit competition," it said. | |
Commission president Jose Manuel Barroso said that energy was a "driving force of our economy". | |
"We need a common European response to combat climate change, to achieve greater energy security and provide abundant energy at a fair price for citizens. | |
"This is only possible if we have a competitive gas and electricity market." | |
Independent regulator | |
The Commission also called for an independent EU energy agency to oversee national regulators. | |
Germany's E.ON and Electricite de France are among those that are tipped to be hardest hit. | Germany's E.ON and Electricite de France are among those that are tipped to be hardest hit. |
Sam Laidlaw, the chief executive of British Gas-owner Centrica, said that the proposals were "an important step in providing more competitive energy markets for the benefit of Europe's energy customers". | Sam Laidlaw, the chief executive of British Gas-owner Centrica, said that the proposals were "an important step in providing more competitive energy markets for the benefit of Europe's energy customers". |
"Ownership unbundling is the best way of opening up the closed shop that is the European energy market, of attracting investment and delivering better security of supply," he said. | "Ownership unbundling is the best way of opening up the closed shop that is the European energy market, of attracting investment and delivering better security of supply," he said. |
"It should also allow better gas flows across Europe to supply our British Gas customers. For unbundling to work, though, a vital ingredient is watertight regulation, which the Commission is rightly proposing to implement." | "It should also allow better gas flows across Europe to supply our British Gas customers. For unbundling to work, though, a vital ingredient is watertight regulation, which the Commission is rightly proposing to implement." |