EU to liberalize markets by 2007: Electricity, gas
BRUSSELS, Nov 25: The European Union agreed on Monday to completely liberalize its electricity and gas markets by mid-2007 as France relented in its resistance to the plan.
France agreed to extend EU market opening from industrial users to private consumers on July 1, 2007, Junior Industry Minister Nicole Fontaine said.
“I believe I am able to say that we have reached an agreement acceptable to all the member states, including France,” she told reporters.
France had been the main stumbling block to an accord as it battled to protect the privileged status of state-controlled giants Electricite de France and Gaz de France.
The European Commission — the EU’s executive arm — wanted the household gas and electricity sector to be opened to competition by 2005, a target that Paris said was much too close.
Liberalization of the EU electricity and gas markets for commercial users is planned for 2004.
Fontaine had said that EDF and GDF would need until 2007-2009 to prepare for the opening of the household market to outside competition as well.
The minister persuaded the rest of the EU to include a safeguard clause that would call for a review of the liberalization in 2006, just before the full opening up, in case of serious distortions to the market.
But “only a very serious deterioration” in the public-sector market for power could set back the far-reaching shake-up, Fontaine said.
The agreement on the 2004 deadline for the opening of energy markets for industrial and business users was agreed in principle by EU leaders at a March summit in Barcelona.
France agreed to that date only after winning concessions on reform of rail freight arrangements.
France has come under strong pressure over energy liberalization because EDF and
GDF have been aggressive in expanding into deregulated EU markets while benefiting from protection at home.
The debate is particularly sensitive in France because trade unions bitterly oppose the planned reforms.—AFP
