To: TobagoJack who wrote (43119 ) 12/12/2003 7:23:08 PM From: elmatador Respond to of 74559 Power generators: Commission drive aims to secure energy supply and avoid big blackouts By Tobias Buck in Brussels Financial Times; Dec 11, 2003 In an attempt to prevent a repeat of the huge power blackouts that plunged millions of Europeans into darkness this year, the European Union yesterday unveiled an ambitious drive to boost the region's security of energy supply. Under plans drawn up by Loyola de Palacio, the European commissioner for energy, member states would be granted powers to force energy suppliers to invest in generation capacity and transmission infrastructure. Failure to comply with targets set by national regulators could lead to financial penalties. The energy package, which requires approval by the European parliament and EU member states, also sets energy saving targets for the region. Member states would have to cut overall energy use by 1 per cent every year between 2006 and 2012, while public-sector energy use would have to be reduced by 1.5 per cent annually. The proposals reflect long-standing Commission concerns about the security of Europe's energy supply. Although some EU member states have recently seen a sharp fall in energy prices as a result of oversupply, countries such as Italy are forced to import a significant share of power from neighbouring states. Brussels also fears that a large number of power stations will be shut down in the near future, leading to a more general shortage of generation capacity. Experts have repeatedly identified weaknesses in Europe's transmission infrastructure, with particular problems in cross-border networks. The power failure in September that left almost all Italy's 57m inhabitants without electricity was largely blamed on the inadequacy of the cross-border power links to Switzerland. Despite an attempt to please environmental groups by stressing the importance of energy savings and renewable energies, the package won little applause from the Green lobby. Mark Johnston, a campaigner for Friends of the Earth Europe, said: "Palacio is living in the past. She has learnt little from progressive policies being pursued elsewhere. If these plans go through, it will be a victory for the big, expensive and ugly over the small, efficient and beautiful." Energy companies are equally unenthusiastic. In a statement released this week, the Union of the Electricity Industry (Eurelectric) warned against "overregulation" and "undue market interference".