💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 2-EU exec tackles 25 states over energy reform

Published 06/25/2009, 01:32 PM

(Adds detail, background)

BRUSSELS, June 25 (Reuters) - The European Union's executive said on Thursday 25 of the bloc's 27 countries were not doing enough to boost energy market competition for the benefit of consumers, taking the first step towards possible court action.

It launched so-called infringement procedures for failure to implement the EU's second package of internal energy market laws -- reforms phased in between 2004 and 2007 to open gas and electricity markets to more competition.

"This major infringement exercise focuses on three broad areas of concern: lack of transparent, simple and inexpensive procedures for dealing with consumer complaints; lack of transparent access to cross-border electricity and gas network infrastructure, and market distortions caused by regulated energy prices," the European Commission said in a statement.

Every EU member state with an electricity connection to a neighbour is facing possible action, with only the islands of Malta and Cyprus escaping unscolded because they are physically detached from the rest of the bloc.

The 25 will receive letters of formal notice for not complying with gas and electricity regulations, the EC said. Many of those states had received warnings on similar issues in 2006.

Many European energy regulators or governments were unavailable to comment or declined to comment until they received the repriminands from Brussels.

"We will consider it carefully when we have received the letter. We are committed to ensuring compliance," a spokeswoman for British energy regulator Ofgem said.

Meanwhile, environment ministers meeting in Luxembourg formally approved the EU's third package of reforms, which aim to liberalise EU energy markets further still.

The 25 countries due to get a letter from the EC are Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Germany, Estonia, Spain, Finland, France, Greece, Hungary, Ireland, Italy, Lithuania, Latvia, Luxembourg, the Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Sweden and Britain.

(Reporting by Marcin Grajewski, additional reporting by Muriel Boselli and Patryk Wasilewski; writing by Pete Harrison and Daniel Fineren; Editing by Keiron Henderson)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.