# CE2004078EN.01081301.xml

| 27.3.2004 | EN | Official Journal of the European Union | CE 78/813 |
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27.3.2004

EN

Official Journal of the European Union

CE 78/813

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(2004/C 78 E/0862)

WRITTEN QUESTION E-3436/03

by Antonio Di Pietro (ELDR) to the Commission

(20 November 2003)

Subject:   Harmonisation of the European energy market

Subject:

The company ‘Portovesme s.r.L’, located at Portovesme near Cagliari, is Italy's leading producer of non-ferrous metais, lead and zinc.

It is currently one of the most modern and integrated metallurgical plants in Europe, but in order to operate it needs large quantities of energy, which in Sardinia — in terms of lire — costs ITL 120-130 per kWh, whilst in other EU Member States, such as France or Germany, businesses in the sector pay the equivalent of ITL 50-60 per kWh.

Under these unfair conditions ‘Portovesme s.r.l.’ is no longer competitive and 1 500 workers may be laid off, a prospect which would be detrimental to the already critical employment situation in Sardinia.

Does the Commission not consider that such large-scale distortions of the market are caused by incomplete harmonisation in the energy sector? How does it intend to remedy this serious situation?

In addition to long-term solutions, is it possible to take specific action to support ‘Portovesme s.r.L’, in view of the special needs of island regions?

Answer given by Mrs de Palacio on behalf of the Commission

(16 January 2004)

(16 January 2004)

According to the final report of the tenth (Italian) parliamentary Commission, which performed an extensive investigation on the status and perspectives of the energy sector, the reasons for the higher price of energy in Italy, in comparison with other Member States are in particular:

| (a) | a market that still lacks competition, |
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(a)

a market that still lacks competition,

| (b) | the choice of more expensive fuels, |
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(b)

the choice of more expensive fuels,

| (c) | the low conversion efficiency of power plants. |
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(c)

the low conversion efficiency of power plants.

The action of the Commission has been focused on the first problem for several years, and two Directives (1) on this issue have now been adopted by the Council and Parliament, giving a strong impulse to the development of a single, efficient and competitive market throughout the Union, the internal electricity market. This in turn should, over a period of time, have a substantial effect in reducing the price differences for electricity among Member States. However, it is unlikely that price differences will disappear completely, because the remaining reasons concern national energy policies, which in conformity with the subsidiarity principle, are dealt with by each Member State.

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(1)  Directive 96/92/EC of the Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity, OJ L 27, 30.1.1997; Directive 2003/54/EC of the Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC — Statements made with regard to decommissioning and waste management activities, OJ L 176, 15.7.2003, which has to be implemented by Member States by 1 July 2004.

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