European Commissioner for Competition Neelie Kroes has presented the final report on the energy sector competition inquiry to the EU's Council of Energy Ministers in Brussels.
Commissioner Kroes informed the Council that the report has confirmed that European energy markets are not functioning properly despite two waves of liberalisation Directives. To enter a market, and provide real competition, new players need access to energy supplies, to the network and to customers. This is not happening, and the sector inquiry has highlighted three major structural problems which are causing this:
"This state of affairs is undermining our shared objective of ensuring secure, affordable and sustainable energy supplies," Commissioner Kroes told the ministers.
Kroes informed the Council that the Commission is already following up the inquiry's findings through a number of carefully selected competition cases. In particular, the Commission has already conducted a number of inspections in companies where these particular issues warrant investigation.
The inquiry and ongoing investigations have revealed serious problems relating to the ineffective unbundling of vertically integrated energy companies. Currently, there is little incentive for vertically integrated network operators to provide third parties with non-discriminatory access, develop networks without taking into account the interests of supply affiliates, and respect the information barriers required.
Commissioner Kroes emphasised that full ownership unbundling would be the optimal solution to address these problems.
