EU hails liberalisation findings

Liberalisation of key public services "improves performance, cuts prices and ensures quality", according to a report unveiled by the European Commission on Monday.

The performance of new operators in electricity, gas, telecommunications supply, and postal and transport sectors over a seven year period, is "good and improving" according to the study - which backs up a pro-liberalisation Brussels agenda.

"The preformance of network services of general economic interest in terms of prices, employment, productitivty, service quality, affordability, accessibility and consumer satisfaction reduced prices to end users, who generally support the introduction of competition," the commission said in a statement.

Frits Bolkestein, the EU's internal market commissioner welcomed the findings: "More competition, combined with an uncompromising commitment to universal service, is gradually helping to achieve the excellent and affordable services that are crucial to the well-being of european citizens."

But the study, covering a pre-EU enlargment 15 member bloc, also found that differences form country to country..

"In some member states delays in market opening and in removing legal and technical barriers to new entrants have held performance back".

The report found that consumers showed greatest disatisfaction with railways and local transport - notably in the UK, Germany and the Netherlands where, "the transformation of rail operators into private "profit-making" companies has led to changes which caused massive dissatisfaction."

In the telecommunications and electricity sector, the study found that average prices dropped by one per cent or remained unchanged.

Prices for gas and road transport "price performance was particularly poor" in gas - 4.4 per cent increase, and road transport - 3.8 per cent increase.

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