WRITTEN QUESTION E-2500/00

by Antonio Tajani (PPE-DE) and Francesco Fiori (PPE-DE) to the Commission

(2 August 2000)

Subject: Liberalisation of the electricity and gas markets

Recent data from Eurostat show that the average Italian family and SMU pay the highest electricity charges in the whole of the EU.

1. Can the Commission provide specific information with regard to Italy's implementation of the directives on the liberalisation of the markets in electricity (Directive 96/92/EC) and gas (Directive 98/30/EC)?

2. Is the liberalisation process initiated by the Italian Government sufficient for the Community directives to be properly implemented?

3. What does the Commission intend to do to ensure that, in the wake of liberalisation, Italy applies charges which fall within the European average?

Answer given by Mrs de Palacio on behalf of the Commission

(11 September 2000)

1. The Italian implementation 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(1) has been assured through legislative decree of 16 March 1999 (Gazetta Ufficiale Nr. 75 of 30 March 1999). Some additional measures, notably regarding the market operator are still pending.

Implementation of Directive 98/30/EC of the Parliament and of the Council of 22 June 1998 concerning common rules for the internal market in natural gas(2) has been done through Legislative Decree 164 of 23 May 2000 (Gazetta Ufficiale, Nr. 142 of 20 June 2000).

For more detailed information on the implementation by Italy of the two Directives, the Honourable Members may wish to consult the following internet addresses:

http://europa.eu.int/comm/energy/en/elec_single_market/implementation/index_en.html, and

http://europa.eu.int/en/comm/dg17/gas98_30.pdf

2. The Commission is examining whether the implementation of the directives by the Italian government is fully compatible with the provisions of the directives. Among the positive elements of the Italian implementation process are the independent regulator, the access to the network on the basis of published prices, and the large market opening in the gas sector. Although the percentage of market opening in electricity is not among the highest in the Community, it is in line with the electricity directive as it stands.

3. The principal objective of the electricity and gas directives is the introduction of competition on an Community wide basis. The implementation of the directives in Italy should lead to a movement of Italian prices towards those in the remainder of the Community. This will be accelerated by the structural changes in the energy sector in Italy that have been announced.

The Commission is taking a number of measures to accelerate the integration of markets. For example, a preliminary system of cross border transmission tarification will enter into force by October 2000, and discussions are now advanced on adopting compatible approaches throughout the Community to congestion management mechanisms. Finally, at the end of this year the Commission intends to adopt a report on the measures that are necessary to meet the demand of the Lisbon European Council to accelerate the completion of the internal gas and electricity market. The communication will address the issue of interconnection capacity, and the measures that need to be taken at Community and national level to solve bottlenecks in the system, for example the interconnection between Italy and Switzerland.

These issues are the most important in creating the internal market for gas and electricity, which is essential if consumers across the Community are to benefit from the internal market in terms of the prices that they pay.

(1) OJ L 27, 30.1.1997.

(2) OJ L 204, 21.7.1998.