CAPGEMINI report on electricity shortages underlines EU energy policy faultlines
European Federation of Public Service Unions (EPSU) Press Communication: Brussels 13 October (immediate release)
CAPGEMINI report on electricity shortages underlines EU energy policy faultlines "Radical overhaul needed to reverse EU-wide trends"
(Brussels, 13 October, 2006) CAPGEMINI reported on the risk of electricity shortages in Europe yesterday. Its report confirms that the internal market for electricity and gas has failed to deliver on its goals. It is the latest in a series of reports that demonstrate that liberalisation does not work for the electricity sector.
Higher electricity prices, job losses, shortages of qualified workers, the inability of the poor to pay their bills, reduced capacity, and lack of investment, are now all documented and seen as resulting from liberalisation of the electricity market. EPSU Deputy General Secretary, Jan Willem Goudriaan, welcoming the report stated that; "European politicians are turning a blind eye to the mounting evidence . These structural faultlines are EU-wide trends, not isolated cases, and point to one conclusion - EU energy policy is fundamentally unsound and needs a radical overhaul". He added that; "This conclusion from CAPGEMINI illustrates that part of the problem is that many advocates of the existing EU energy policy have a misguided loyalty to a rigid free-market ideology. It is time to look at the facts"
EPSU has long argued for a framework which allows the electricity and gas companies to invest, with stable rates of return, a framework that ensures industry a long term guarantee of stable prices, minimises the risks of black-outs, and ensures reasonable prices for all citizens. That framework starts with maintaining regulated prices for domestic users.
Overviews and analysis of recent reports on the European electricity market from Professor Steve Thomas of the University of Greenwich on www.epsu.org/a/1465 They are essential reading to understand why European Commission President Barosso is wrong in pushing for more liberalisation.
The Financial Times reported on 12/10/2006 the EU energy market assesment from the consultancy CAPGEMINI. That report states that Europe can expect electricity shortages, as investment is not keeping up with demand. It also says "the more competitive and commercial environment for European energy had in part been responsible for erosion of the capacity margin".
The European Federation of Public Service Unions is the largest federation affiliated to the ETUC and represents 10 million workers providing services to the public in health and social care, local, regional and central government, and utilities in energy, water and waste.
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Contact person EPSU Brian Synnott tel: +32 2 250 10 80 (0474 98 96 75) fax: +32 2 250 10 99 e-mail: epsu@epsu.org
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