Ofgem welcomed the European Commission’s publication of its ‘Strategic Energy Review – an Energy Policy for Europe’ on 10 January 2007, together with the accompanying reports on issues such as the internal market, climate change and renewables.
What happens next?
The Commission is widely expected to bring forward a number of legislative proposals throughout 2007, including a ‘third package’ of single market legislation over the summer.
Ofgem supports the development of new legislation to overcome the existing ‘regulatory gap’ which impedes the development of a genuine single European energy market.
We are working within the European Regulators' Group for Electricity and Gas (ERGEG) to develop the requirements of a comprehensive regulatory framework for cross-border competition and investment.
ERGEG believes actions should include:
- the levelling up of the powers and independence of national regulators,
- the development of an integrated European grid, or network of networks, to approved EU operating and security standards,
- the development of a European Networks Body to agree such standards, possibly building on existing arrangements,
- the development of a cross-border regulatory mechanism, preferably building on existing arrangements in ERGEG to develop an enhanced ‘ERGEGplus’, and
- 'ownership unbundling’ of transmission assets to ensure non-discriminatory access to pipes and wires and efficient investment in infrastructure.