WRITTEN QUESTION P-0461/99

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

(23 February 1999)

Subject: Implementation of the electricity directive in France

On 17 February 1999 the French parliament held a debate on the implementation of the European directive on electricity. According to the Treaty every Member State is required to transpose a European directive into national legislation. The electricity directive had to be transposed into national legislation by 18 February 1999.

1. Has the Commission noted the position of Mr Pierret, the French State Secretary, who wishes to see a controlled opening up of the electricity market?

2. According to press reports the new proposal by the French government means that companies can change their electricity supplier only once in five years. Is this in accordance with Article 19 of the electricity directive?

3. Furthermore, only producers will be able to supply electricity and dealers and middlemen are barred. Is this in accordance with Article 19 of the electricity directive?

4. What are the consequences of this restrictive French government approach for the reciprocity and total liberalisation of the European electricity market?

5. What steps is the Commission going to take if it considers that the French provision is not in line with the European directive?

Answer given by Mr Papoutsis on behalf of the Commission

(7 April 1999)

1. The Member States and the Commission have cooperated closely in both bilateral and multilateral terms in preparing the legislation intended to transpose Parliament and Council Directive 96/92/EC of 19 December 1996 on common rules for the internal electricity market(1). This being the case the Commission has indeed received the "Draft law on the modernisation and development of the public electricity service" of 11 December 1998. This draft was adopted by the National Assembly, on first reading, on 2 March 1999, with a certain number of amendments, of whose details the Commission has still not been made aware. The draft is still to be examined by the Senate.

2. The directive contains no statements on the duration of electricity supply contracts which, according to the Commission, are covered by contractual freedom and, where appropriate, the competition rules set out in the EEC Treaty. The Commission recently became aware of the adoption, during the vote on first reading by the National Assembly, of an amendment which would require a minimum of three years duration for contracts between electricity generators and suppliers. The fact of imposing a minimum period could constitute an unjustified restriction on the opening up of the market required by Directive 96/92/EC, and also an infringement of Articles 5, 85 and 90 of the EC Treaty. The Commission will adopt an official stance if the amendment in question is ultimately adopted on conclusion of the legislative process.

3. The Directive contains no obligation on the Member States to recognise the activities of electrical wholesalers and dealers. This is a matter left to subsidiarity.

4. The Directive requires the Member States initially to guarantee that 26,48 % of the their electricity market will be opened up. Member States may go beyond that figure but are in no way required to do so. The Commission will state its views on the reciprocity clause under the conditions provided for by Article 19 of the Directive if a Member State lays the matter before it.

5. If this were the case the Commission would react as it would in any instance of failure to comply with a European Directive: by serving notice and perhaps introducing an infringement procedure.

(1) OJ L 27, 30.1.1997.