Ireland among utility offenders named by EU

The European Union executive took legal action against 17 member states including Ireland for failing to follow EU rules that…

The European Union executive took legal action against 17 member states including Ireland for failing to follow EU rules that aim to open the 25-nation bloc's gas and electricity markets to more competition.

Andris Piebalgs , EU Energy Commissioner, speaking Dublin recently
Andris Piebalgs , EU Energy Commissioner, speaking Dublin recently

The European Commission said Austria, Belgium, Britain, the Czech Republic, Germany, Estonia, Spain, Finland, France, Greece, Ireland, Italy, Lithuania, Latvia, Poland, Sweden and Slovakia would receive warnings for failing to properly adopt the EU rules.

Spain would be warned for poor application. "Member states must implement the directives on gas and electricity quickly and in full, not only in form but also in substance," Energy Commissioner Andris Piebalgs said in a statement.

Some states were also criticised for failures relating to biofuels, oil stocks, and the use of renewable energy sources for electricity.

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The EU is trying to create a better integrated gas and electricity market so consumers around the bloc can have more freedom to choose what company supplies their energy needs.

The Commission believes an EU internal energy market will reduce prices and boost the security of the bloc's supplies while creating more competition. But problems among member states when transposing the EU rules into national law were hurting those goals, it said.

"The member states are currently opening up their markets in such different ways that this is hampering the development of a genuinely competitive European market," the Commission said.

It said the main problems included the persistence of regulated prices, the ability to choose a supplier, the powers of regulators, and preferential access given for some long-standing electricity or gas contracts.

The EU started liberalising its energy markets over six years ago but in many countries huge former monopolies still dominate the gas and power business, keeping prices high and making it difficult for newcomers to gain a foothold.