No players know that it will be much longer

Eurogroup Director

G.B.: What is, is the paradox between the effects of the guidelines and the objectives that had been set initially. The guidelines were developed in a context of over-capacity of electrical production and low world prices for gas. Suddenly, the reflections which were led to write Community texts focused on downstream - transport, distribution, marketing - and not on the upstream. There was excess capacity and it is not cwos energy supply. However, since electric overcapacity melted and the ratio of forces on the gas market has changed - the power is on suppliers than consumers.

G.B.: The players met - with the exception of certain policies - do not call into question the system because the process is involved, tell us they. They are in a situation where they try to take account of the elements that had not done so at the time when the guidelines were designed to have a pragmatic vision and look at the future.

G.B.: Three themes emerge from our different interviews. For good decisions to be taken tomorrow, the idea is first to raise the political class to a global consideration of energy issues. If it considers that the interests of the consumer, of the climate or the taxation for example, poorly treated the subject. However, the political class is recently before energy files for short-term electoral purposes. The specialists will have teaching work to make policies better take into account the real energy issues for the Europe of tomorrow.

G.B.: It is to try to provide concrete answers to the energy security. Electricity (production capacities and networks) and gas (networks), most of the people we met are favourable to the generalization of forecast balances supply/demand, country by country, then at the regional level (in the sense of European regional markets). So between the time have regulatory approvals and construction of new production or new infrastructure means periods, to go at least ten years in advance. Everyone agrees on the fact that he must find the means to anticipate and invest. On this issue, many cite as solutions where industrialists with strong energy needs are organized to finance investments - as Finland-, even if it is perhaps more complicated in other European countries... In any case, the conclusion is that the market does not give the necessary signals for very long-term investment. Therefore, the risk is that the investment will be in the less expensive production capacity - and therefore naturally to cycles combined for gas-, investments which are not necessarily the most intelligent in terms of energy security for Europe!

G.B.: It is the third point mentioned by our interlocutors, the pedagogy and the security of supply. The conclusion is that should enhance the functioning of the market by relying on regional initiatives launched by the European Commission and regulators in February 2006. Need to move in with rules more common and more stable than today ' today. Because the current process has resulted in 25 different situations, 25 regulators who do not have the same powers, or even sometimes of different organisations of the market. It created a regulatory mosaic, which poses a number of problems, on the one hand for network managers who want to work together, on the other hand for operators who want to transport energy from one country to another.

G.B.: It may be a concern, but the current situation is so complicated that if there is not a little at the regional level, it will never succeed in the next stage of the single market. The actors are pragmatic and say: do not break anything. Much - including historical operators - have made efforts to reform, modernize and have played the game of the opening. Now, there's a number of things to do, as for example to strengthen the coordination between national regulators and out of a purely national vision, increase transparency in the markets, etc. Do not release the bridle on these things there and put them in place.

G.B.: No, players know that it will be much longer. Most are a little disillusioned, but they say that we should do with and that everyone has his role to play so that things are at best. Many are also the European Commission saying that it must change its role and help players to find solutions. Some, citing the competition DG, sometimes have the impression that it is wrong to debate and that it prevents them from moving forward, doing audits and "raids" in companies...

G.B.: Yes, but what is this competition ask certain players. It was to lower prices, according to the European Commission. This was a decoy because Europe cannot control its only prices, necessarily depends on the world energy stage. Then, today, it is also the Commission to explain what is the competition.