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06.06.2007

Energy Council discusses issues of the internal market for electricity and gas

Energie

At their meeting in Luxemburg on June 6 chaired by German Economics Minister Michael Glos, the Energy Ministers discussed the implementation of the European Council's Energy Action Plan of March 9, 2007 in connection with the internal market for electricity and gas.

Federal Minister Glos: "It was clear again today in the Energy Council that Europe's internal market for electricity and gas must become more integrated and develop more dynamic. Above all, the full benefits of liberalization must be passed on to consumers and industry."

The discussion in the Energy Council showed once again that there is the need for action on the question of the effective unbundling of network operations from energy production and supply activities. But it also became clear that unbundling is only one of a number of measures for accelerating the dynamics of competition. In particular, it is not a cure-all. Necessary, among other things, is also better collaboration on the part of the national regulatory authorities and the TSOs (transmission system operators). There must also be improvements in the framework conditions for investment in the networks and new, cross-border lines. Minister Glos: "We submitted suggestions to the Commission. I expect that the Commission will take appropriate account of them in elaborating its proposals for a third Directive package on the internal market for electricity and gas."

In addition, Federal Minister Glos and Energy Commissioner Piebalgs reported on the most important developments and events involving external energy relations during the term of Germany's EU Council Presidency. The focus here was, among other topics, developments concerning international matters of energy efficiency, the energy community with Southeastern Europe, and the development of an energy partnership with Africa.

Glos outlined the reports on external energy relations as follows: "The EU's external energy relations have recently taken on enormous importance. We have conducted a successful Summit with the United States. At the Summit with Russia in Samara, the EU not only displayed solidarity among the Member States and a united position, but was also able to reach agreement with Russia on the establishment of an early-warning mechanism for avoiding energy supply interruptions."



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Date: 08.06.2007