WE NEED A PROPER, FUNCTIONING MARKET FOR ENERGY

Fiona Hall MEP <info@fionahall.org.uk>

WE NEED A PROPER, FUNCTIONING MARKET FOR ENERGY - HALL

July 9, 2008 12:00 AM

The European Parliament has voted on a key legislative proposal today that will open up gas markets across the European Union. This legislation has the potential to be of benefit to consumers and gas providers alike.

Although the UK gas market has been fully liberalised, UK gas companies do not have the opportunity to invest in other countries markets in the way that foreign owned gas companies can invest in the UK market. The legislation also includes some key consumer protection provisions: and consumers will have the right to withdraw from contracts with a gas provider without charge, the right to change suppliers within two weeks and the right to compensation if service quality levels are not met.

Commenting after of the vote, Fiona Hall MEP, Liberal Democrat Energy Spokesperson and the European Parliament's rapporteur on energy efficiency, said: "It is about time that the rest of Europe caught up with the UK in terms of ownership unbundling. The need to separate supply and production has not been an idea universally held by all Member States. But it is long overdue and will be of benefit to consumers across the EU.

"The aim of this proposal is to ensure a well-functioning internal market of gas, which could help the EU achieve more secure, competitive and sustainable energy.

"The so-called "Independent Transmission Operators", whilst not the complete liberalisation we would have wanted is necessary because many smaller eastern European providers would have been vulnerable to the ever looming Gazprom which would lead to a worse situation than we are in currently. This compromise is very different from the original "third-way" proposed by the French and Germans and we have the diligence of liberal forces in the parliament to thank for that. "