§ Mr. DobbinTo ask the Secretary of State for Trade and Industry what was the outcome of the Energy Council held in Brussels on 2 December; and if he will make a statement. [101691]
§ Mrs. LiddellThe Council considered several matters of interest to the United Kingdom.
The Commission made two presentations on the Internal electricity market. The first concerned progress on implementation of the electricity directive and the second harmonisation measures in electricity which look at cross border trading issues in respect of transmission pricing and congestion. As regards the implementation 614W report, I expressed disappointment that the Directive had not been implemented in all member states and stressed the importance of a level playing field which ensured fairness for everyone. I also congratulated the Commission on taking prompt action against those which had not implemented the directive. I said that fully open energy markets in Europe was a high priority for the UK because this would increase the competitiveness of European companies and reduce prices for consumers. I also called for progress far beyond the market opening levels set out in the Directive. On the harmonisation of cross border trading mechanisms the Council agreed conclusions which note the work of the transmission system operators to develop transmission pricing mechanisms and procedures for managing congestion; encourage them to come forward with early proposals for a resolution of outstanding issues and invite the Commission to monitor progress and to come forward with its own proposals if the system operators are unable to reach a final agreement. I announced that the UK and the Netherlands are working on competition indicators to show how well competition is developing and where barriers persist. The results of this work will be shared with the Commission and other member states.
In the absence of a proposal from the Commission on the access for renewables to the internal electricity market, the Council was unable to have a full exchange of views. I expressed disappointment at the continued delay and urged the Commission to come forward with a proposal as soon as possible. I said such a proposal should minimise distortions, ensure transparency, provide flexibility to distinguish between different kinds of renewables and promote cost-effectiveness and price competitiveness and that we supported the Commission in its objectives of promoting renewables as part of the response to Kyoto and the progressive inclusion of renewables in the internal electricity market. I was among a number of ministers who counselled against the inclusion of binding targets for renewables in the directive, this being a matter best left to member states, thereby respecting the principle of subsidiary.
The Council agreed a report to the Helsinki European Council on integration of environmental and sustainable development into energy policy which focused on priority areas for action, which include the development of the internal energy market and the promotion of renewables and energy efficiency measures.
In addition, the Energy Council held an orientation debate on a proposal for a directive on energy efficiency requirements of ballasts for fluorescent lighting aimed at raising product standards in Europe. Council conclusions were approved on strengthening the northern dimension of European energy policy with a view to improving co-ordination of actions between countries bordering the Baltic Sea and on the North West Region of Russia and to help provide greater focus for EU support mechanisms.
The Council also note reports on gas harmonisation, gas security of supply, a progress report on the energy Charter Treaty including a negotiating directive for a transit protocol and information from the Commission on the millennium bug and a Community energy efficiency action plan.