By Elaine Green
Development Minister Dimitris Sioufas gave an eloquent speech about the role of Greece as a regional energy hub on April 6. Yet his speech on day two of an Athens Economist conference this week was ironic, given a reprimand the day before from the European Union. Greece was named and shamed by the European Commission as one of the countries failing to comply with EU regulations for opening up energy markets in gas and for electricity production, as well as for inadequate reporting of oil reserves.
Austria, Belgium, the Czech Republic, Germany, Estonia, Spain, Finland, France, Greece, Ireland, Italy, Lithuania, Latvia, Poland, Sweden, Slovakia and the United Kingdom were also rapped over the knuckles by the EU.
Sioufas highlighted the progress made with the continuing deregulation of the electricity and gas markets and new legislation, which encourages competition from private investors in the market. Yet this so-called openness does not include letting private investors take over the incumbent, Public Power Corporation (PPC).
Asked by the Athens News if the government plans to fully privatise PPC (aka DEI), he said New Democracy will definitely not sell control to private investors. The government will not lower its participation in PPC under 51 percent this year, next year or in the foreseeable future, Sioufas told us firmly.
Likewise, despite a new gas framework and the expansion of its gas activities in 13 more regions, the Public Gas Corporation (DEPA) will not see a selloff, Sioufas told this newspaper on the sidelines of the event. The Spanish, a previous bidder for a stake under Pasok, are no longer a part of the equation for the future of DEPA, he confirmed.
Shortfall on alternative sources
Sioufas described Greece's energy policy as a dynamic one and added that despite past delays it is on a good path towards liberalisation that includes renewable energy sources. Asked by Athens News for further details on renewables, he said that long-awaited legislation will be forthcoming next week in this respect.
The European Commission said Greece failed to meet an October 2003 deadline and was joined by Italy, Latvia, Cyprus and Ireland in reneging on agreements on the use of renewable energy sources for electricity production.
"Member states must implement the directives on gas and electricity quickly and in full, not only in form but also in substance," Energy Commissioner Andris Piebalgs said.
The EU wants to bolster the use of renewable energy sources, aiming to increase this to 21 percent of total production by 2010, up from the 14 percent it stands at currently.
There was some good news in the mix. The commission agreed to abandon earlier proceedings against Greece for failure to comply with directives for biofuels, following satisfactory reassurances from the Greek state.
Slipping on oil reserves
Greece faces being brought before the European Court of Justice, however, over its failure to supply statistical data regarding the levels of oil reserves to Brussels within the set deadlines.
Greece first received a warning letter for failing to accurately report oil reserves - the first stage before the commission takes legal action against a member state - in October 2004 and took measures to correct reserve data. But it continued to be consistently late in supplying the information to the commission, which was counter to EU regulations and prevented an accurate assessment of total EU oil reserves.
Cyprus and Belgium will also receive reasoned opinions from the commission for keeping inadequate oil reserves.
The commission is taking Spain and Luxembourg to the Court of Justice for failure to send their national plan for implementation. It is still looking into whether Portugal's and Hungary's laws are in conformity with the legislation.
Piebalgs stressed that member states must implement the directives on gas and electricity quickly and in full, not only in form but also in substance. Having carried out a detailed examination, the commission has decided to launch a large number of infringement procedures against member states that have not applied these rules or other measures, which it called essential for the achievement of a high level of growth and competitiveness in Europe.
The commission has made the internal market in electricity and gas one of the six priority areas of the strategy for sustainable, competitive and secure energy, which it adopted in March.
Parallel to this, Prime Minister Costas Karamanlis will visit neighbouring Bulgaria on April 13-14, the government said on April 6. European Union member Greece and Bulgaria - which will join in 2007 or 2008 - were among nine countries in southeast Europe to agree on April 1 to ratify a treaty, which adopts EU single market regulations in energy. The treaty is aimed at creating a stable regulatory environment in hopes of boosting energy investment.
(Athens News, 7/4/06)