Brussels to launch 50 energy law cases

The European Commission will on Monday (3 April) make public a list of up to 50 offences by EU member states for which it will take legal action against in an attempt to open up energy markets.

Energy came on the EU agenda earlier this year when Russian energy giant Gazprom turned off the tap to Ukraine in a price dispute affecting European gas supplies. The row prompted Brussels to focus on EU energy security and on its internal energy market, which is dominated by national interests.

Legal action will be taken in around half of the 106 energy law cases currently under investigation by Brussels, an EU official told the Financial Times. Single market commissioner Charlie McCreevy said in March that he was prepared to go to court on the subject.

The European Union has recently seen an increase in national protection of energy companies in relation to foreign takeovers, especially in France and Spain. The commission has accused Madrid of blocking a takeover bid by German gas company E.ON for Spanish rival Endesa on the grounds that such a move violates EU free market rules. The French government has also blocked a takeover by Italian energy firm Enel of France’s Suez by orchestrating a takeover of Suez by Gaz de France to keep the company in French hands.

Last year, the commission challenged 11 member states for failing to implement gas and electricity liberalisation rules agreed to in 2003 and set to be adopted by July 2004. Spain and Luxembourg are the only countries which have still not complied with the rules and are could face trials at the European Court of Justice. The commission plans to fully open EU energy markets by July 2007.