Is there a “golden pathway” into the European Energy Market?

Speaker : Dr. Eberhard Meller, Executive Manager of VDEW

After the publication of the proposals of the European Commission concerning the accelerated achievement of the European internal energy market and the conclusions of the European Council meeting in Stockholm, 23/24 March on the same subject, this dinner-debate gives an opportunity to have a free discussion before the first reading by the European Parliament.

The following questions raised by Dr. Meller will also have to be discussed by the European Parliament and the Council of energy ministers:
• What is the actual level of competition reached up to now?
• What are the differences in the member States? 
• Which different tools can be used to achieve an effective internal energy market?

In order to explain more clearly Germany’s position and its opposition to a national or European Regulator, Dr. Meller described the state of play with regard to liberalisation in Germany and its neighbouring countries.

He said that, in his view, the present situation, with market opening of approx. 66%, was to be considered a success and pointed out that Germany had attained almost 100%, while those bringing up the rear had reached around 30%. The situation in Germany was characterised by a system consisting of numerous individual components, which had grown up over many years and now comprised some 900 supply undertakings.

This kind of system was not to be found in any of the neighbouring countries where in some cases, supply was in the hands of 2 to 4 undertakings and hence, in Dr. Meller’s view, there remained little scope for competition. In Germany, in budget terms, there had been a price reduction – an important indicator of competition – of approximately 10-15% and of 35-40% for industry. The proportion of foreign electricity traders in Germany was at present around 25%. It had taken Germany two years to attain this level of openness.

Nevertheless, it was still not possible to talk about a European energy or electricity market since around 100 million customers still had no choice. There were still 15 separate electricity markets and, in Dr Meller’s view, it was the goal of creating one market which was the determining factor, rather than the method or route by which this goal might be attained. Unlike the European Commission, he was in favour of socialisation of cross-border tariffs, as well as the original principle of the first Directive, negotiated access, and against regulation.

It became clear during the ensuing discussion that the approach as regards the regulator and his or her role differed from one Member State to another and that the Germans wished to retain their hitherto successful system of self-regulation.