The European Union must put in place a proper energy policy

Brussels, 28/02/2006

The liberalisation of the gas and electricity markets increases competition, but not necessarily in favour of consumers and new enterprises. On the contrary, the latest developments in France and Spain highlight the risks of industrial concentration, which the Commission denounced in its recent inquiry into the state of play in the energy sector. We are, in fact, witnessing the setting up of a European oligopoly, and anti-trust laws will be unable to stop this.

For Europe, the risk lies in not giving priority to the security of supply and playing a part in the privatisation of the regulation of energy provision, giving sole authority to the commercial market and bringing about the weakening or even the loss of public control over a crucial sector for economic, social and environmental activities.

This is not what we wish to see. On the contrary, Europe needs a coherent approach to energy policy, as well as a long-term vision - essential in a sector that requires high capitalisation. This coherence is also needed to support the sizeable investments that must be made in order to protect the environment, and to achieve real price stability both for consumers and industry. More than ever, we need a clear European energy policy to be put into place.

Four weeks away from the European Council on energy, and the publication of a Green Paper on European energy policy, it is important that the Commission and the Council clearly indicate the choices for the future that they have in mind to govern this key sector.