Internal Energy Market
(3rd Liberalisation package; Electricity and Gas Regulations)
What is it?
With the Third Liberalisation package (Electricity and Gas Regulations), the European Union aims to complete the integration of national energy markets by 2014. The aim is to make the energy market fully effective and to create a single EU gas and electricity market. This will help to keep prices as low as possible and increase standards of service and security of supply. The core of the package is the Directive for a single market for gas (COM 2009/73) and the Directive for a single market for electricity (COM 2009/72). Both should give consumers and businesses more and better products and services, more competition, and more secure supplies. The legislation includes 'unbundling' guidelines requiring energy transmission networks to run independently from the production and supply side, providing open markets and competition. Currently, EU member states are to adopt and implement the two Directives into their national law until 2014. However, many member states have not even begun to transpose the legislations. The third legislative package also contains three other regulations:
- Regulation of establishing an Agency for the Cooperation of Energy Regulators (COM 713/2009)
- Regulation (COM 714/2009) on conditions for access to the network for cross-border exchanges in electricity
- Regulation (COM 715/2009) on conditions for access to the natural gas transmission networks
This third Package of directives and regulations entered into force on 3 March 2011.
Why is it important?
The internal energy market can have huge benefits for consumers facing economic difficulties and for industries by aligning the network operation rules for gas and electricity as well as making cross-border investment in energy infrastructure easier. Furthermore It will facilitate the deployment of smart grids, which are the entrance point for future smart technology applications, including e-mobility, smart lighting, smart buildings and e-health infrastructures.
Finally, the third Package of directives and regulations introduced a new system for establishing binding European-wide network codes, which are relevant entrance points for future smart grids.
We are sceptical that the 2014 deadline for the implementation of the 3rd energy liberalisation package will be met. Some even argue that Europe would have never been further away from an internal energy market as it is today. To our industries this is unacceptable and should consequently be addressed as a matter of priority. We urge member states to get back on track and not to delay the implementation.
How we’ve been engaged
Orgalime and its national member association are constantly reminding national governments to speed up the implementation process in order to have a fully integrated energy market in the European Union by 2014 without delay.