The European Community is seeking to give large industrial groups the right to buy supplies of natural gas and electric power anywhere within the EC effective Jan. 1, 1993.
According to a draft directive, consumers of more than 880 MMcf/year of gas should have access to transportation networks to enable them to buy at the most attractive prices.
If the legislation is passed and is successful, the EC wants to extend this right to small distributors of gas and electricity so they could buy from the lowest cost source rather than from large domestic monopoly suppliers.
Main beneficiaries of the latest effort by the EC to break the monopoly power of companies that currently dominate European gas and power markets will be the biggest consumers, notably aluminum, steel, glass, and chemical companies. The EC estimates only 1% of gas consumers fall into this category.
OPPOSITION EXPECTED
The directives will run into strong opposition from the mostly state owned gas and electric power distribution companies with monopoly rights in many EC countries.
In 1991, intense lobbying from these interests forced the EC to back down from plans for an early dismantling of energy monopolies. Progress will still be made but at a much slower pace.
EC Energy Commissioner Antonio Cardoso e Cunha said the new directives will give large gas consumers the right to build interconnecting cross-border pipelines to gain access to supplies where necessary.
He said the long term aim is to transform a European energy market based on national monopolies and their ability to determine prices.
In the future, there would be significant crossborder trade with prices established through negotiations between buyer and seller.
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