Russia wants clearer EU unbundling plan

16 October 2007 16:36  [Source: ICIS news]

PARIS (ICIS news)--The European chemicals industry has called for stringent measures to stop key players dominating Europe’s energy markets, but Russian energy minister Viktor Khristenko said on Tuesday the European Union (EU) must not treat gas and electricity in the same way when it finalises its unbundling plans.

 

When the European Commission (EC) adopted plans last month to subject European energy markets to greater competition, the European Chemical Industry Council (Cefic) called for the final legislation to include “concrete measures to reduce the level of market concentration” in all sectors.

 

Speaking to the press after a meeting in Brussels with EU energy commissioner Andris Piebalgs, Khristenko said the unbundling of gas and electricity should not be completed in the same way as the two markets did not follow the same patterns.

 

He warned that different risks were involved with electricity being more of a short-term issue and gas a long-term concern.

 

“They are of a different order of magnitude,” he said. “Electricity’s distribution network is more flexible and that reduces the risk.”

 

He added that Russia would like to be part of the debate with the EU on unbundling.

 

The EC’s proposal also suggested that non-European utilities, such as Russia’s Gazprom, would have to prove they complied with European rules and regulations before purchasing significant stakes in EU energy networks.

 

Khristenko said investment by EU companies in Russia was around seven times greater than that of Russian firms in Europe and confirmed that Moscow would – notwithstanding changes in legislation – participate in the development of the energy market in several countries, notably Germany, Italy and France.

By: Philippa Jones
+44 20 8652 3214

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