Energy Headlines

November 26, 2010

All EU Citizens free to choose their electricity and gas supplier as of 1 July

Since 1 July all European citizens have been able to freely choose their electricity and gas suppliers, as this was the final date for the full opening of the electricity and gas markets in the EU. There are a few exceptions to take account of special circumstances where it is not possible to introduce competition yet, such as the Baltic States and in Member States where gas was introduced only recently, but the basic rule of freedom of choice for every citizen has become established in the EU. The full market opening represents a milestone in the creation of a fully functioning European energy market.

As of the same date, larger and medium-sized local electricity and gas distribution companies will also have to be organized as legally separate companies (so-called 'legal unbundling'). This measure will enhance the independence of the distribution companies from their parent companies with the aim of ensuring a fair access of all suppliers to the distribution network. At transmission level legal unbundling became compulsory already in 2003.

"I encourage European consumers to take advantage of their freedom to choose their energy suppliers. A functioning EU energy market can only be obtained if consumers participate in the market actively. Nonetheless some other obstacles to a truly competitive internal market remain – the Commission will therefore continue to watch over the correct implementation of the existing rules and is set to propose additional legislative measures soon", said Commissioner Piebalgs.

The internal energy market is an important measure in ensuring fair prices to citizens and industries. It also guarantees that even smaller companies, for instance those that invest in renewable energy, have access to the energy market. Furthermore, a well functioning market ensures sufficient investments in power plants and transmission networks thereby helping avoid interruptions in power or gas supplies. The European Regulators' Group ERGEG has most recently published a status review on end-user price regulation and market opening which gives an overview of the market opening dates in all Member States.

The fact that retail electricity prices have, on average, remained relatively constant in real terms, despite very obvious price increases in the cost of primary fuels such as coal and gas, clearly demonstrates the increased efficiency in electricity supply. The electricity price in particular for households would in fact have decreased if the effects of taxation by Member States were excluded.

As far as gas is concerned, the factors affecting prices, such as the need to move to more expensive supply sources such as liquefied natural gas, and the continued linking of some gas imports to the price of oil, would have occurred whether or not competition had been introduced. It must be recalled that energy prices cannot be expected to always remain low regardless of external factors. Nonetheless, competitive and open markets will bring the best prices to end users, including the energy intensive industry.

Although cconsumers are not obliged to change their energy suppliers, such a change may ensure a better deal in terms of price and service. In the Members States where the freedom to choose the energy supplier has been in place for some time, experience shows that customers increasingly take advantage of this opportunity. The Commission will also present a new initiative to reinforce the rights of energy consumers on the 5th of July: the elements that will eventually lead to the adoption of a European Charter on the Rights of Energy Consumers.

Market opening as such can not guarantee a sufficient degree of supplier choice and competition. The Commission is therefore determined to continue in its efforts to ensure a fair and dynamic competition in all Member States.

Source: EU Press Room


← All News and Events

Contact Us

4-B, Inzhenerniy Alley, office 311
Kyiv, 01010 Ukraine
Tel: +38 044 332-66-08
Fax: +38 044 280-04-12
Email:
Contact Us
Copyright © 2015 FGL Energy LLC All rights reserved Privacy policy | Terms of use