Abstract
European Union (EU) development of the Internal Energy Market is imminent. This article discusses open access in the European gas industry, which is closely following the 1997 progress in the electricity sector. Once the rules are completed, the federal-like Internal Energy Market will promote allocative efficiency and a secure supply of energy. It will coordinate licensing, rate setting, and dispute resolution procedures and provide transparent commodity and transportation rates. Re-regulation will courage lower prices and increased benefits for energy users.
Part II describes structural characteristics of the Internal Energy Market, identifies major environmental and security of supply concerns, and discusses the European Energy Charter as the basis for long-term, EU cooperation in the area of energy. Common-carriage and direct-interruptible sales proposals have been stymied until recently. Opposition stemmed largely from an oligopolistic European gas industry of economically self-interested, large producers.
Part III discusses European common-carriage proposals. Monopolistic gas companies currently inhibit the public interest by dominating the European gas industry through long-term take-or-pay contracts. This part suggests that third-party access to a European gas transport system is needed to increase competition and promote the public interest in market-driven prices, as opposed to artificially high prices, and in equal access to energy. This part also argues that price transparency, a requirement that gas utilities disclose their rates to the public, is a prerequisite to free competition in the gas industry.
Part IV discusses the practical enforceability of EU common-carriage proposals within the general framework of EU competition law. Part V concludes that the steps taken towards free competition within a single European Internal Energy Market do not go far enough, and reasserts that the intransigence of vested interests has slowed progress.
Recommended Citation
Black, Alexander J.
(1995)
"European Law and Public Utility Open Access,"
Florida Journal of International Law: Vol. 10:
Iss.
1, Article 6.
Available at:
https://scholarship.law.ufl.edu/fjil/vol10/iss1/6