3rd Energy Package gets final approval from MEPs

More choice, investment and security of supply lie at the heart of the 3rd energy package. EU energy markets will become more competitive as energy companies will have to separate supply and production from transmission activities. The wide-ranging rules adopted by Parliament 21 April 2009 will also improve consumer rights and promote regional solidarity in the event of severe gas supply disruptions.

Parliament backed by a large majority a compromise on the “third energy package” agreed between MEPs and the Council Presidency. At the heart of the proposals is the concept of “unbundling” - separating the operation of gas pipelines and electricity networks from the business of providing gas or generating power.

Separating supply and production
 
Member States will have to choose among three options for separating supply and production activities by gas and electricity transmission networks:
 
full ownership unbundling the independent system operator (ISO)the independent transmission operator (ITO)
The three options will apply to transmission networks - such as the high-voltage power lines which connect distant power plants to sub-stations in populated regions.
 
Improved consumer rights
 
For the consumer the shake-up in the market will mean getting all the relevant data about how much gas or electricity they use and information on bills and what rights they have as consumers. The creation of an energy Ombudsman or consumer council is also envisaged.
 
On the EP's initiative the new legislation includes special protection measures for vulnerable energy consumers. EU countries should take “appropriate measures” to address energy poverty such as National Energy Action Plans or benefits in social security systems to guarantee necessary energy supply to vulnerable customers.
 
Energy solidarity in emergency situations
 
The new legislation also seeks to promote “regional solidarity”. It requires Member States to co-operate in the event of “severe disruptions” of gas supply, by coordinating national emergency measures or developing and upgrading electricity and gas interconnections.