Publications Archive

The European Commission reports on the trends in electricity and gas prices in the EU and the resulting impact on the international competitiveness of EU companies. It calls on Member States to ensure greater cost efficiency with regard to environmental and energy-policy measures so as to reduce taxes and levies and considers additional state measures to support energy efficiency.

Where the market is unable to secure adequate electricity generation, the Member States should, in the European Commission's view, be able to set up "capacity mechanisms" under certain conditions. These capacity mechanisms should meet certain criteria; they should, inter alia, be technology-neutral and accessible across borders. Beforehand, however, the Member States should firstly, assess whether there is in fact a shortfall in generation, secondly, identify and remove the causes for the shortfall of generation, and thirdly, evaluate which alternatives to capacity mechanisms could remove these shortfalls in generation, where appropriate.

The Commission announces measures to advance the completion of the internal energy market. For instance, it wishes to implement the Third Energy Package also through infringement proceedings. Moreover, it wishes to prevent Member States from applying capacity mechanisms as this would distort competition in the internal energy market.

The proposed Regulation is to replace the existing Directive on the security of gas supply. The Proposal contains obligations of the Member States with respect to their infrastructure and the establishment of emergency plans. In times of crisis the Commission is to coordinate the gas supply.

According to the Commission the potential of liberalisation of the electricity and gas markets should be further tapped. Competitive solutions are to increasingly enjoy priority over price regulation. Moreover, the Commission is making statements on the frequency of supplier switching.

With renewables taking up a growing share of energy production, the European Commission wants support for renewables to be carried out more competitively. For this purpose, feed-in tariffs should be largely replaced by feed-in premiums and quota models. Degressive elements of the support system should mean that overcompensation and distortions of competition are avoided. Support for existing installations should not be changed retrospectively.

According to the Commission, the EU must urgently invest in outdated and poorly interconnected energy infrastructure in order to meet their energy policy and climate objectives by 2020. To this end, national approval procedures for projects of European interest are to be streamlined and better coordinated. The Commission announces to submit guidelines or a legislative proposal on cost allocation to address major or cross-border projects through tariff or investment rules in 2011. 

During the “energy summit” on 4 February 2011, the European Council will discuss the Commission’s “Energy Strategy 2020“ and its „concept for an integrated European energy network”. According to the Commission’s estimate approximately 1 trillion Euros must be invested in the EU energy system by 2020 in order to achieve the EU targets for renewable energies and energy efficiency and to develop the necessary energy infrastructure.

The proposed Regulation (“REMIT“) is to reinforce the integrity and transparency of wholesale energy markets for gas and electricity. To this end, insider trading and market manipulation is to be prohibited. Moreover, the markets are to be monitored by the EU energy agency ACER and by the national regulatory authorities and market participants’ data be collected. In doing so, national regulatory authorities and ACER are to cooperate with each other.

According to the Commission, Member States can reach their target for the development of renewable energy by 2020. To this end, the Commission calls for a “greater convergence” of national support schemes in the EU and an increased cooperation among Member States and with third countries. Moreover, networks should be further developed, interconnected at cross-border level and modernised.