# CE2004065EN.01004401.xml

| 13.3.2004 | EN | Official Journal of the European Union | CE 65/44 |
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13.3.2004

EN

Official Journal of the European Union

CE 65/44

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(2004/C 65 E/043)

WRITTEN QUESTION E-0756/03

by Joan Vallvé (ELDR) to the Commission

(12 March 2003)

Subject:   Liberalising the electricity sector in the Illes Balears

Subject:

In Question E-2260/00 (1) raised a problem facing liberalising electricity prices in the Illes Balears, namely that such liberalisation might not have the desired effects in terms of cutting prices, since isolated regions — due to their geographical situation — mean that a fully liberalised market is unfeasible. Full liberalisation of isolated systems may even produce negative effects, such as price increases stemming from monopolistic or oligopolistic behaviour on the part of the naturally limited number of market players operating in such supply systems.

1

The Commission's solution was that, should the Spanish Government consider inappropriate to liberalise such small isolated systems, ‘it has the possibility to refer to Article 24(3) of the Directive 96/92 EC of the Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity’ (2) and apply for a derogation from the main provisions of the Directive whilst at the same time ensuring appropriate price levels for final consumers through effective regulation of the market.

2

The Commission further stated that it was fully aware of the specific situation of islands in connection with energy supply, and was currently analysing the situation and considering possible solutions and measures, in particular with regard to the promotion of renewable sources of energy, which usually have a particularly large potential for expansion on islands which are not connected to national networks.

Has the Commission concluded its examination of the case in question? Has it decided to take any steps to deal with these specific situations?

Does the Commission know whether the Spanish Government or the government of any other Member State has made use of Article 24(3) of Directive 96/92 EC to apply for a derogation from the main provisions of the directive?

Now that this directive is being amended under the co-decision procedure, and Parliament is calling for Article 24 to be deleted in its entirety, does the Commission have plans for any measure which will encourage full liberalisation of small, isolated supply networks, as in the Balearic Islands, which would continue to be subject to derogation, although without the possibility of referring to the Directive?

Answer given by Mrs de Palacio on behalf of the Commission

(12 May 2003)

(12 May 2003)

The Commission is active in promoting the use of renewable energies in islands, including the Balearic Islands, by way of the Community's Research and Technological Development (RTD) Framework Programmes and the Altener programme. The latter programme is specifically devoted to the promotion of renewable energies and will continue as part of the Intelligent Energy for Europe Programme once adopted.

In addition, a Renewable Energy Partnership has been concluded in Mallorca to promote the use of wind power as part of the Commission's Campaign for Take Off to promote the effective take up of renewable energies in the Community.

The Commission is not aware of any request by Member States for derogations under Article 24.3 of Directive 96/92/EC of the Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity.

The new draft Directive on common rules for the internal market in electricity (3) maintains (Article 26.1) the possibility for Member States to ask for a derogation such as that foreseen in Article 24.3 of Directive 96/92/EC. This possibility is present in the text of the Common Position (EC) No 5/2003 adopted by the Council on 3 February 2003 (4). Article 24 of the Common Position in fact concerns safeguards measures to be adopted in emergency situations.

3

4

Clearly however a definitive response to this point must await final adoption of the draft Directive expected shortly.

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(1)  OJ C 89 E, 20.3.2001, p. 170.

1

(2)  OJ L 27, 30.1.1997, p. 20.

2

(3)  OJ C 240 E, 28.8.2001.

3

(4)  OJ C 50 E, 4.3.2003.

4

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