Where are the European Energy Policy with benefits of an open and competitive energy market? Where are the last Green Papers?

The European Union is working in mechanisms to build up market-based instruments to support environment and energy related policy purposes. Between some precedents are the European Union Emissions Trading Scheme for greenhouse gas emissions (MEMO/05/84), the Energy Taxation Directive (IP/03/1456) and, in the field of transport, the Eurovignette Directive. So, what’s new? September is an important month for EU’s energy sector, because it’s going to determine the final propose for an important EU’s energy reform. In addition, in the last weeks, there was a rumor indicating that some people want to introduce strongly protectionist “policies” for non-communitarian energy firms that want to invest in E’s energy sector. Some important energy firms (like Gazprom, Sonatrach, CNPC, ONGC) are interested to invest (M€) and participate in the European energy market, but there are a group of EU’s voices who prefer to first develop a EU energy market “between and with preferences” for EU’s energy firms looking to build European Giants of the energy.

Well, for some people the idea could sounds “cute”, but I have some enquiries.
1st. Some non-communitarian energy firms, like Gazprom, recently express its “disgust” for this kind of intention to apply protectionist policies “called” reasons of nationality, and If we remember an important part of the energy supply of the European Union depends on the non-communitarian energy resources. What does that mean? This can cause that some countries apply a reciprocity policy at any time against the European Union’s protectionist policy and consequently it will have a profound impact in energy supply. Here’s a couple of examples: Gazprom or Sonatrach (Russia and Argelia) in the past had applied a “casual” supply shortages; with a protectionist policy, as a result, the European Union could have the most pessimistic scenarios with very serious energy shortages. Okay, so what is the real EU’s energy situation? The problem of the European Union is the energy security, because with protectionist and without protectionist policy, the European Union depends of the non-communitarian energy resources. That explains one of the best reasons why the European Union wants to develop technology and sustainable energies: because it’s  looking to enhance the its energy security (oh, and help the climate changes, too). Nevertheless it’s not enough, because will be expensive and requires a long time to be profitable for the domestic economy of the European Union’s member states. So is it prudent to apply already an early protectionist policy?

2nd. We have recently experienced two energy battles between E.ON-ENEL-GAS NATURAL-ACCIONA-ENDESA, and what about GDF-SUEZ-ENI? In both cases, most people think they were not clearly deals. What will be the method to build the europeans Energy Giants? Who is going to decide it? The shareholders, the European Prime or Energy Ministers, the European Energy Commissioner or another EU’s institution, the energy CEOs, the National Energy Regulators, european energy associations, the big or small consumers, etc …

“ It’s not an open and competitive energy market”

So, what is the Next?

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|Manuel Torres Laveaga

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