EU energy policy tabled

A new European energy regulator and legislation setting gas stock reserves are among leaked Brussels proposals for an EU energy policy.

Moves to a European energy policy follow the EU’s growing dependency on natural gas imports and an energy crisis following supply disruptions from Russia in January.

European commission measures aim to boost Europe’s energy security, build up emergency gas reserves, seal closer ties with Russia and to create a new EU regulator.

Drafts of a policy paper for an EU energy policy have been written and rewritten over recent days ahead of discussion at a March 23 summit of Europe’s leaders.

An annual strategic EU energy review, involving stocktaking and an action plan to be discussed every year at the spring European summit.

Leaders would monitor progress, identify problems, coordinate responses and the commission puts in an early bid for legislative measures.

Existing EU directives on gas and electricity security of supply “should be re-examined to ensure they can deal with potential supply disruptions”.

“This might include a new legislative proposal concerning gas stocks to ensure that the EU can react to shorter term emergency gas supply disruptions in a manner that ensures solidarity between member states,” states a leaked draft paper published by Environment News Daily.

Reducing import dependence, in particular for oil and gas, could see the EU bring forward legislative measures, to be agreed by the European parliament and governments.

“A benchmark could act as a useful discipline and help the EU to stem the increasing dependence on imports,” states leaked proposals.

A 2007 EU review “could define a limit for import dependency, and define the measures necessary to achieve this goal”.

The commission will also examine whether a European energy regulator is needed to aid the creation of an EU-wide grid with common rules and standards for a “real” pan Europe market in gas and electricity.

“Such a regulator could have decision-making powers for common rules and approaches such as a European grid code and would work together with the network operators,” says the paper.

“A European Centre for Energy Networks could also bring the network operators together in a formal body to assist work on developing a European grid code.”

Securing Europe’s energy supplies are a priority following disruption’s to Russian gas supply after a Moscow-Kiev dispute hit pipelines in transit across the Ukraine.

One commission proposals envisages the establishment of a European Energy Supply Observatory to monitor the EU’s markets and to identify infrastructure problems.

Annual EU energy reviews should propose priorities for the construction of new infrastructure to ensure the security of EU energy supplies, notably gas pipelines and liquefied natural gas terminals.

“Examples include independent pipeline supplies from the Caspian region and North Africa into the heart of the EU,” says the commission paper.

Closer links to Russia, the EU’s most important energy supplier, are to be marked “a quantum leap” in partnership at both the European and national level.

“Work should start towards an EU-Russia energy treaty… At the same time, priority should be given to rapid ratification of the energy charter treaty and conclusion of negotiations on the transit protocol.”

Crisis management to enable the EU “to be able to react quickly and in a fully co-ordinated manner” to security of supply problems.

“This could be addressed by a new more formal, targeted instrument to deal with emergency supply events. This might involve, for example, a monitoring mechanism to provide early warning and to enhance response capabilities in the event of an external energy crisis.”

The commission also urges the development a pan-European Energy Community to include the EU’s neighbours such as Algeria, Caspian and Mediterranean countries, Turkey and Norway.

“Creating a “common regulatory space” around Europe, based progressively on common trade, transit and environmental rules, would create a predictable and transparent market to stimulate investment and growth, as well as security of supply, for the EU and its neighbours.”

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