3 Ms Kroes, of course, will struggle to get her way. The European Commission, which on the same day presented its recommendation for improving EU energy policy, also wants to see the unbundling of ownership, the legal separation of energy suppliers and transporters, something that the integrated energy companies and interested governments, notably in France and Germany, are bound to oppose ferociously.
4 Complicating the matter is an argument over the security of energy supply in Europe. Much has been made of the risk for western Europe of depending too heavily on Russian exports of gas. Russia under Vladimir Putin is prone to using energy exports as a blunt tool of foreign policy, especially when trying to bully countries in its hinterland. Last year Russia interrupted gas deliveries to Ukraine, affecting supplies in central and western Europe too. This week it blocked oil exports passing via Belarus to Europe, though that spat was soon resolved.
5 The risk is that concerns about security of supply may be used spuriously by those in Europe who oppose the sort of liberalisation encouraged by Ms Kroes. The likes of E.ON and EDF may claim that only protected national champions are able to secure supply, by striking long-term deals with powerful foreign suppliers. The Commission disagrees. Such deals are too often politically motivated and far from transparent. Protection has been tried for long enough and evidently has not worked for the internal market, nor have these companies secured the best deals for consumers from the Russians.
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2016-02-26
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