The new High Level Group (HLG) on Competitiveness, Energy and the
Environment was set up by the European Commission following its Communication on Industrial Policy in October 2005. It is designed to act in an advisory capacity for EU decisions-makers, to ensure the compatibility of EU initiatives in industrial, energy and environmental policy. The group consists of the Members of the Commission for Enterprise and Industry, Competition, Energy, and the Environment, as well as representatives of a number of the member states, business and some NGOs.
The HLG’s report, adopted this week, focused on four areas.
1. The functioning of EU electricity and gas markets
The HLG has called on the European Commission to make full use of its competition powers to ensure a more competitive environment for electricity and gas supply.
In addition Member States are called upon to improve the implementation of the current regulatory framework on energy liberalisation
2. Cost-effective and predictable prices for energy intensive industries
The Group argues that public authorities should evaluate current initiatives relative to pooled generation, long term contracts and partnerships. They also want the Commission to provide guidance on the compatibility of long term downstream supply contracts and competition law.
3. Energy efficiency and conservation
The HLG has recommended that a new sense of urgency is needed on energy efficiency and a list of priorities in the area should be established. They also argue that there is a need to have a better assessment of the payback time of investments in energy efficiency measures. At the same time take-up of Energy services should be promoted and energy using products should be subject to improved efficiency standards. The group also recommends making full use of the Eco-design Directive (e.g. minimum energy efficiency requirements for all energy using products), as well as further development of combined Heat and Power, and district heating.
4. EU emissions trading scheme (ETS)
While supporting the EU ETS the group would like to see scheme give a stronger signal towards encouraging low carbon investment, and providing a level playing field. Ways to reduce the administrative burden for small installations to monitor and report emissions should be explored.
Looking to the future the HLG has also set up two ad hoc groups to analyse barriers and drivers for investment in innovative energy technologies and long term energy future for the EU.
The Secretary of State for Trade and Industry, Alistair Darling, is one of the members of the group and EEF has been working with the DTI to feed our views into its deliberations. We shall report in the future on further developments.
The full HLG report and more information is available here: http://ec.europa.eu/enterprise/environment/hlg/hlg_en.htm