There must be put an end to the energy fragmentation in each state
The deputy-chairman of the European Commission Maros Šefcovic, announced a new start for the energy market. He does not exclude taking legal steps against the Member States of the EU.
Frankfurter Allgemeine Zeitung, 8 February 2015
The deputy-chairman of the European Commission, Maros Šefcovic, proclaimed a new direction for development of the energy policy of the EC. “Practically once again we have to start over in the electricity market and to develop a new marketing concept”, said Šefcovic in a conversation before this newspaper.
Despite the long years of commitments for open energy markets, the internal market in the EU was very fragmented like before. It should not be scared also from the legal steps for this to change. „The different support schemes for RES have even created new obstacles and distorted trading”, the Slovak said.
“We need to pay more and more attention to the fact that we put the energy supply on an economically sound basis.” This means a stronger role for the EU. “The European approach is more solid, better, cheaper and more reliable than the national approaches can ever be, in particular to integrate RES.”
Although every state confesses this on theory, said the Commission Vice-President. But when it comes to the promotion of RES, everyone has again their own national way. Actually, it is the policy for promotion of hydro, wind and solar energy in recent years that again provided for the dispute between the European Commission and the EU Member States. Last year, the Commission sought how to make Germany move to a more market-oriented promotion policy. But finally it was satisfied with a minor change.
With the new restructuring of the electricity market it is about more than promotion of green energy, the Slovak said: “We have to solve the paradoxical situation where the wholesale price is so low that the electricity producers can not make a living, and because of the different national taxes and charges the price for the end customer is so high that many Europeans cannot pay it.” Ten percent of the Europeans at the moment could not pay their energy bills. According to Šefcovic it would not be a solution to this problem if the Member States limit the prices by using state mechanisms. This would only be an obstacle to the required investments for the expansion of the energy grids. Regulated prices are widely used in the EU. Above all, France uses the instrument, whereas, Germany does not.
Šefcovic announced that the Commission will examine to what extent the transit charges and taxes unnecessarily increase the energy prices. The subsidies for environmentally or climate – harmful energy sources should end up. Šefcovic does not want to question the responsibility of the individual EU Member States for their energy mix. Still it is the states to decide whether they generate their own electricity by using wind, coal or nuclear power plants. On the other hand, the states have also committed to superior objectives, especially with climate protection. This objective they should also take into consideration.
A central task for the EU in the coming years will be to ensure the power supply despite the rising offering of green electricity, Šefcovic said. The growing green energy production has led to the fact that using conventional coal and gas power plants is becoming less attractive. At the same time, these power plants are still needed, because the production of green energy varies greatly and therefore the consumption can not be always equally covered. Unlike in the past, one solution might be to allow the energy companies have very high prices for boosting their power plants if necessary.
This is currently under discussion also in the federal government. Šefcovic flatly rejected any thoughts to subsidize the provision of power plants on a national level. If this happens at all, such capacity mechanisms should be established at European level, or at least be open to foreign suppliers. Šefcovic wants at the latest next year to submit concrete proposals on this.
Harsh criticism expressed Šefcovic at the still tentative and often unsatisfactory implementation of EU rules for the completion of the internal market. Many states have not even correctly implemented the second internal energy market package 2003, not to mention the requirements of the third package in 2009. The EU Commission would not tolerate it any longer. “We will take more determined legal actions in the future against the defaulting Member States,” Šefcovic said. The expansion of the infrastructure despite the direct support of key projects by the EU is not progressing quickly enough. It should therefore be discussed openly and the unused funds to be reclaimed faster than before. The electric grid of many EU states will not correspond to the challenges of the future: “It is unacceptable if in many places, the whole grid collapses when in the same neighbourhood five Teslas are connected to the grid at the same time to recharge.”
In response to the crisis in Ukraine, the Slovak sets before all making the EU less dependent on Russian gas supplies. Currently the EU supplies one third of its gas from there. Half of it flows through Ukraine. “We must intensify the expansion especially of the southern corridor,” Šefcovic said. It should provide the EU with Caspian gas by evading Russia. The Slovak was sceptical regarding the bundling of the gas purchase by the EU member states. But despite that the Commission would consider the proposal. During the talks between Russia and Ukraine over gas supplies in the summer of 2015, the Commission wants to assume a mediating role. “I think it would be desirable to have a trilateral agreement for the supply of gas for Ukraine this year”, Šefcovic said. The EU had been asked by the Ukrainian side for mediation. “We are ready for this,” he said.
