"If you are in a hole stop digging" say energy workers to Council
If you are in a hole stop digging" say energy workers to Council
EPSU Deputy General Secretary Jan Willem Goudriaan: "The Commission argues citizens should swallow more of the same medicine of electricity and gas liberalisation that already makes society dangerously ill. On the occasion of the Council of Ministers we say: STOP and re-think." The market approach the Commission advocates does not deliver in this sector. Electricity is a social good, and physical, social, historic, geographic and economic conditions prevail which makes competition unlikely or at great cost to society. The Council of Ministers of Energy meets 28 February 2008 Brussels.
EPSU Energy Group President Sven Bergelin: "Workers in the sector as well as in large energy users and small and medium-sized companies will pay the price for what is now a 10 year experiment that has lead to, in the words of the European Commission itself: a malfunctioning market. "
EPSU has made the following demands:
Member States who wish to do so based on the democratic decisions of their citizens should be able to continue to regulate the price of electricity and gas at least for domestic households;
Low income users should not be cut off of electricity and gas if they can not afford to pay their bills. Social tariffs or other mechanism should be established to ensure lower electricity and gas rates;
When regulators are given more powers, so should the democratic control be increased over their decisions and the participation of stakeholders be ensured in the decision-making process for example of trade unions, low-income users and environmental organisations. Low income users should have resources to promote their interests;
Regulators should monitor quality of service, repairs and renewables and ensure sufficient and qualified staff are available to ensure high quality services.
EPSU does not share the obsession of the Commission with ownership unbundling. Didier Bauer, EPSU’s President of the Gas group in the European social dialogue adds: "It is the wrong priority at a time when the EU should concentrate on getting investment to tackle security of supply and to deal with climate change both of which require an effort of dedication and focus comparable to bringing someone on the moon."
EPSU demands that the different models now proposed are compared as to their effects on employment, prices and investment. Independent of the introduction of the model, it should not negatively effect the workers concerned, and be implemented in consultation with the social partners to ensure that information, consultation and participation rights are not weakened. The proposal of a group of Member States on ownership unbundling is a step away of the Commission obsession and hence is welcome.
Several countries have just adopted legal and functional unbundling in 2007 and already the Commission wants to change the rules. The evidence presented by the European Commission is not convincing and has been criticised. Research demonstrates a positive correlation between vertical unbundling and price increases, and a positive correlation between vertical integration and customer satisfaction. Despite its 15 year history of deregulation, privatisation and ownership unbundling of the electricity and gas network and its acclaimed status as one of the most liberalised markets in the EU, the UK House of Commons is asked by Consumer groups and trade unions to investigate price rigging. And more low-income users are in trouble because of double digit price increases. Just 2 years ago its nuclear industry was bankrupt and had to be bailed out of a crisis by tax-payers money otherwise 20% of generation capacity would have shut down - the Commission’s brilliant model ! The Council of Ministers of Energy meets 28 February 2008 in Brussels. The European Parliament considers amendments to the Commission proposals 27 and 28 February.
For information please contact:
Jan Willem Goudriaan, EPSU, 32 2 2501080 or + 32 475 256912
Additional information and research is available on our website: www.epsu.org/a/3612
EPSU press ending
EPSU is the European Federation of Public Service Unions. It is the largest federation of the ETUC. 8 million public service workers from over 200 trade unions are members. They organise workers in the energy, water and waste sectors, health and social services and local and national administration.
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