ELECTIRICTY rapporteur ELUNED MORGAN has demanded Parliament's voice be heard, after Euro-MPs gave their backing to plans for Europe's electricity networks to be separated from generation.
On first reading of ELUNED MORGAN's report on reforming the EU electricity market, MEPs today voted in favour of its proposals for ‘full ownership unbundling' which would remove the conflict of interest of companies that own both production and distribution of electricity.
The Parliament's position conflicts with that of the Council. Earlier this month EU energy ministers agreed a general ‘third way' position to opening gas and electricity markets that would not require integrated firms to sell their transmission grids.
Speaking following the vote in Strasbourg today ELUNED MORGAN said:
"Today's vote is a victory for European consumers who have been paying over the odds for their electricity bills. We need a shake up of the market in order to introduce true competition across the EU's energy markets.
"The vote has clearly demonstrated the will of the Parliament and that the best way to deliver the level playing field we need is through the total separation of energy supply from transmission. .
"The fact is that companies who own both the energy grids and generation have a vested interest in keeping other companies out of the market. As it stands, some companies in some Member States have not been playing fair, giving priority access to their own companies and putting obstacles in place to stifle competition.
"It is only through a full separation of generation and grids that the European Union market in electricity can truly develop. Unbundling is the only option if we want to deliver a fair deal for consumers and ensure the stability required for the one trillion Euros investment that will keep the lights on in Europe.
"This position will mean that we need intense negotiations with the Council in order to ensure a much better deal for consumers. The will of the Parliament must be heard in this process, but we are anxious to come to an agreement on this if at all possible."
The ‘unbundling' plans will also ensure access to the grid for renewables and promote a fully functioning internal market, bringing choice and security benefits for consumers.
Among the report's other key proposals which received backing from MEPs today are:
- - Tackling energy poverty - for the first time placing the issue on the EU agenda, including measures to ensure each Member State has an energy poverty action plan
- - Protecting consumers - simplification of procedures for switching supplier; better transparency and access to information
- - Boosting energy efficiency - roll-out of SmartMeters within 10 years; increasing block tariffs; encouraging energy efficiency
- - Better regulation - increased powers for National Regulatory Authorities; increased transparency; ensuring effective market opening through cooperation with competition authorities
- - Support for SMEs - including extending the definition of universal service obligations
Notes
- To view the full report please see: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&reference=A6-2008-0191&language=EN&mode=XML
- Eluned Morgan is Labour MEP for Wales and a member of the European Parliament's Industry, Research and Energy Committee.
For more information please call Lisa Stevens at the Labour European Office on 029 2022 7654 or 079 7367 8175 or the European Parliamentary Labour Party press officer, Silke Thomson on +32 479 790 053.
European Parliamentary Labour Party, European Parliament, Rue Wiertz, 1047 BRUSSELS, Belgium
