In concrete terms, European energy companies are the
subject of a perfect storm, which is endangering security of supply and the
transformation towards a low-carbon economy, as well as undermining their
capacity to attract capital
FRANKFURT
--The chief executives of eight leading energy
utilities Wednesday slammed the European Union's political leaders for the continent's
fragmented energy policy and sought a more favorable market environment to
incentivize investments in energy infrastructure.
In a joint statement the CEOs of some of
Europe
's
largest utilities, including
Germany
's
E.ON SE (EOAN.XE) and
France
's GDF
Suez SA (GSZ.FR) warned that the European energy industry's "perilous
situation" needs to be addressed urgently.
"The current lack of visibility on energy policies and regulatory
uncertainty will inevitably lead to an absence of energy investment with
negative effects on security of supply, employment and reactivation of the
European economy," they added.
The managers criticized lawmakers at the E.U. and national level for failing to
provide a market environment that incentivizes investment in new energy
infrastructure, from production of energy to transporting and storing, while
containing the related costs.
The comments come as European Union leaders are meeting in Brussels Wednesday
to discuss energy as well as tax evasion issues. Energy consumption in
Europe
has
been declining during the global financial and sovereign debt crisis in the
euro-zone. Coal and gas-fired power plants have also been hit by a combination
of relatively high commodity prices and low electricity tariffs. The unabated and
rapid expansion of renewable energies is also taking its toll on conventional
power generation.
Additionally, the collapse of the E.U.'s carbon dioxide emissions trading
scheme, or ETS, once the flagship in the bloc's fight against global warming,
has raised questions about the effectiveness of
Europe
's
energy policy.
The utilities also slammed European governments for inconsistent policy
frameworks, with each member state promoting renewable energies separately.
"In concrete terms, European energy companies are the subject of a perfect
storm, which is endangering security of supply and the transformation towards a
low-carbon economy, as well as undermining their capacity to attract
capital," the companies said in their statement.
Market observers have warned that
Europe
needs
a less fragmented energy policy, particularly in terms of supporting renewable
energies.
"European-level ambitions for the renewable energy sector will only be
realized with a more coherent and stable pan-European perspective on the
financial returns investors should expect," said Cornelius Brandi,
chairman of law firm CMS.
Mr. Brandi added that
Europe
could lose out against other
regions of the world if it fails to adopt a new energy policy approach.
Countries like,
Saudi Arabia
and
Japan
have
recently announced massive investment into or generous support mechanisms for
renewable energies.
Signatories of the statement include the CEOs of Germany's E.ON and RWE AG,
Italy
's
Enel SpA (ENEL.MI) and Eni SpA (E),
Spain
's Iberdrola
SA (IBE.MC) and Gas Natural SA (GAS.MC),
France
's GDF
Suez and Dutch gas trader GasTerra.