WRITTEN QUESTION P-3356/97 by Gunilla Carlsson (PPE) to the Commission (16 October 1997)

Subject: Energy policy switch in Sweden

In June 1997, the Swedish Riksdag took a decision on Sweden's energy policy, entailing changes to the country's energy supply system. The Swedish government has stated in this connection that Sweden's electricity supply is to be based mainly on indigenous production. The Riksdag is soon to consider a draft law which would mean that network licences for new links with other countries could be awarded only by Svenska Kraftnät, a wholly

state-owned undertaking. The monopoly covers all links without distinction (i.e. both domestic and international). The result of this change would be to give Svenska Kraftnät a monopoly over new international cable links.

The Swedish decision could mean that Sweden its attempting to get out of fulfilling its obligations under the Treaty whilst also obstructing the liberalization of the electricity market.

In view of this, will the Commission state:

1. Whether it considers itself to have cause to take action against a Member State which imposes a monopoly on new cable links for the intra-Community trade in electricity?

2. Whether it is considering drawing up a directive on the basis of Article 90(3) in order to ensure that public-sector undertakings are not given undue preference over private companies where a Member State is clearly found to be ignoring its obligations under a directive (96/92) which is designed to liberalize the European market in electricity?

Answer given by Mr Papoutsis on behalf of the Commission (12 November 1997)

The Commission would, in addition to the indications given below, refer the Honourable member to the reply it gave to oral question H-724/97 by Mr Virgin during question time at Parliament's October 1997 part-session ((Debates of the European Parliament (October 1997). )).

The functioning of the internal electricity market is regulated through Directive 96/92/EC of 19 December 1996 concerning common rules for the internal market in electricity ((OJ L 27, 30.1.1997. )). The Directive entered into force on 19 February 1997 and Sweden has two years to bring into force the laws, regulations and administrative provisions necessary to comply with the Directive.

In order to ensure a timely and correct implementation of the Directive, the Commission is in close cooperation with the Swedish authorities as well as with all other Member States. This cooperation takes place through bilateral contacts with administrations including regulators and through multilateral meetings.

The Directive lays down the rules relating to the organization and functioning of the electricity sector, access to the market, the criteria and procedures applicable to calls for tender and the granting of authorizations and the operations of the systems. It does not regulate the ownership of the transmission grid and it does not oblige Member States to open up competition regarding the construction of new lines in the Member States and between them.

However, Article 21 of the Directive lays down that electricity producers and electricity supply undertakings, where Member States authorize their existence, can supply their own premises, subsidiaries and eligible customers through a direct line. The construction of direct lines shall be based on the authorization system in accordance with objective and non-discriminatory criteria. The authorization may be linked to a prior refusal of access to the existing lines, for example because of lack of capacity. With this provision (Article 21(4)) parallel power lines may be avoided when there is sufficient capacity.

In line with Article 26 of the Directive, the Commission will review the application of the Directive and submit a report on the experience gained on the functioning of the internal market in electricity in order to allow the Parliament and the Council to consider, in due time, the possibility of a further opening of the market which would be effective in the year 2006. This report will examine all aspects of the functioning of the internal market in electricity.