WRITTEN QUESTION E-0865/00

by W.G. van Velzen (PPE-DE) to the Commission

(22 March 2000)

Subject: Implementation of the electricity directive

Chapter IV of the electricity directive, Directive 96/92/EC(1), governs the role of transmission system operation. Article 7(5) and (6) read as follows: The system operator shall not discriminate between system users or classes of system users, particularly in favour of its subsidiaries or shareholders. Unless the transmission system is already independent from generation and distribution activities, the system operator shall be independent at least in management terms from other activities not relating to the transmission system. Article 9 then states: The transmission system operator must preserve the confidentiality of commercially sensitive information obtained in the course of carrying out its business.

With a view to the satisfactory implementation of the agreements reached by the Commission, the Member States and the transmission system operators (TSOs), I have the following questions:

1. Can the Commission outline how the independence of the transmission operators in each Member State of the EU is ensured?

2. If it should be that there are in one or more Member States transmission operators which are still physically and/or legally dependent on the parent company, is the Commission prepared to instruct the national supervisory authorities at the earliest opportunity to ensure that such transmission operators become independent from the parent company de jure and de facto?

3. If the system of European TSOs is to function satisfactorily, it is vital that data, particularly on expected electricity generation, are kept secret. What assurances does the Commission have from the TSOs in the various Member States and from the supervisory authorities that the secrecy of data is physically guaranteed?

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

Answer given by Mrs de Palacio on behalf of the Commission

(15 May 2000)

1. The Member States have all ensured the accounting unbundling provisions in their legislation. As far as unbundling of the business activities of the transmission system operator (TSO) from other interests of the electricity company, is concerned, there are three degrees to ensure this: management unbundling, legal unbundling and ownership unbundling, where management unbundling represents the minimum requirement 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 choices made by the Member States are the following:

- Belgium: Management unbundling, moving to legal unbundling,

- Denmark: Legal unbundling,

- Germany: 8 TSOs, some management unbundling, others legal unbundling,

- Greece: Management unbundling,

- Spain: Legal unbundling, separate ownership structure, however with the possibility of the same consortium owning the shares,

- France: Management unbundling,

- Ireland: Legal unbundling,

- Italy: Legal unbundling,

- Netherlands: Legal unbundling, moving to ownership unbundling,

- Austria: Legal unbundling, management unbundling of the networks of Tiwag and Illwerke,

- Portugal: Legal unbundling,

- Finland: Ownership unbundling,

- Sweden: Ownership unbundling,

- United Kingdom: Ownership unbundling in England and Wales, management unbundling in Scotland and Northern Ireland.

Note: Luxembourg has not yet implemented the Directive

2. The Commission has sent letters to the Member States where there are TSOs that have only been unbundled in management terms asking for information on the way in which the management unbundling provision of the Directive is implemented in practice. In these letters, the Commission pointed out that it considers that the obligation of management independence and accounting unbundling requires at least functional independence and it specified the various ways in which this, in the Commission's view, can be achieved. Once the Commission has received the replies, it will decide if further steps are required to ensure that management unbundling of the TSO is correctly implemented in all Member States.

There is, however at this stage, no obligation on the Member States to legally unbundle transmission system operation or to require separate ownership of the natural monopoly activities from generation and supply. On the basis of the Directive, it would therefore be impossible for the Commission to instruct the national supervisory authorities to ensure that the TSOs become legally independent.

3. The Commission agrees with the Honourable Member that for effective competition to develop on the internal electricity market it is of crucial importance that commercially sensitive business information is kept secret. That is why the provision in Article 9 of the directive is of eminent importance. The Commission will ensure that this provision is properly implemented by Member States and also will apply the competition rules should abuse of dominant position be revealed.