Claude Turmes, MEP

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• Claude Turmes, MEP
• Vice President of the Green/EFA group in the
  European Parliament
• Regional energy markets a diversion from the
  real solutions ?
• 28/3/2007

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Competition?
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EU energy market problems

• Transmission grids not neutralised
• Huge market concentrations in electricity and gas
  sectors and between elgas
• Access to finances distortions between
• different players (decom fundsgrid ownership)
• Market distortions through non-internalisation of
  externalities (coal, nuclear versus renewables)
• Missing market integration

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Competition on German market

• RWE E.on 60 of power generation
• E.on 60 of gas
• Due to relevant structural factors in the market
  and competition as it stands, there is no
  competition between E.on and RWE within Germany
  (FCO in Saarferngas ruling, February 2007)

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Power generation market concentration in a
(future) fully integrated Market of France,
Belgium, The Netherlands, Luxembourg, and
Germany, 1996-2005
Note Power production was consolidated if a
generator owns more than on third of the shares
of another generator Source Öko-Institut
calculations
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True fair competition through new EUnational
legislation

• Ownership unbundling
• For the transmission level on elgas
• Not for distribution level
• De-minimis stays at 100.000 connected clients
• De-concentration of the elgas market
• Stronger tools for regulators (Elgas release
  programs)
• Limitations for new invest of dominating players
  !
• Stimulate new entrance in gas, renewCHP
• Segregated decommissioning funds
• Full internalisation of external costs
• ETS with full auctionning after 2012
• Polluter pays in for the nuclear sector (decom
  funds, liabilities)

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Weaknesses of a focus onRegional energy markets

• Institutional vacuum between national and
  European level
• Lack of democratic control
• Not able to overcome the real stumbling blocks
  (concentration, distorsion)
• Possible escape door for the needed tougher
  regulations (ownership unbundling,
  de-concentration strategies)

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• Thank you for your attention!
• For further information
• http//www.greens-efa.org/

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Stock of Old Power PlantsGermany
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Urgent to do

• Ownership unbundling grid power prod.
• Market deconcentration strategies
• Full internalisation of external costs
• Favour new entrants (eff renew)
• Independent regulators with clear political
  mandate
• Democratic control

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Fun(d) or no fun(d) ? Access to Nuclear Decom.
fonds

• E.on 15 billions
• RWE 10 billions
• Endesa 0
• ENEL 0
• EDF -20 billions
• Vattenfall (depends)
• (CentralEastern EU) - XX billions

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Price signal from today NAPs